This is a must-watch video for Oculus Rift fans looking for some augmented reality potential. Dr. William Steptoe is a post-doctoral research associate in the Virtual Environments and Computer Graphics group at the University College London. He has developed a stereo camera add-on and software toolset that brings augmented reality potential to the Oculus Rift. Mixed with motion capture cameras around the room, he is able to not only see the environment around him, he is able to interact with it.
Highlights of the video included mixed real world and virtual world shadowing, wearing a virtual Oculus Rift while wearing a real Oculus Rift, and creating and interacting with virtual tablet screens.
The video does show significant latency and the YouTube aspect ratio isn't quite right (to us, anyway), but if you can set these minor issues aside, the video is very impressive!