Sony called the project EYE TOY.Yeap.You can interact with a plane, a character called Seymour, spiders,you can cause ripple like water effects on your screen by pretending you are touching it(very realistic.Its as if your screen is made out of water),you can act as if your hands are wings and steer in a 3D(not so good looking) enviroment.
There are balls which u use to interact with the objects and characters on screen.For example you move the ball in front of the camera and as you move it it leaves colorful lines behind it or effects letting u create shapes etc on screen.Batterflies might sit on the ball and according to the movement you do they react etc.
One of the demonstration Sony showed was the Magical Duel.2 people can play through I-LINK throwing spells at each other by creating shapes with the ball on screen that generate "magics and spells".
Thats all I can say right now
Original stuff.