Thanks for the suggestion Joe, however i think i should point you to the 2nd page of this thread, where this was already discussed about a year ago:
http://www.mtbs3d.com/phpBB/viewtopic.p ... 2&start=44
I did actually have a quick test with reflective materials, but the main problem is that if they are flat then the reflective angle is very small compared to the viewing angle of certain LEDs (the ones i was using were almost 180 degrees for instance). Also the amount of reflected light can vary with the angle and with the lighting conditions of the room, so it's quite hard to make a robust recognition algorithm. The only way i can see it working would be using ball reflectors, but that's something i was explicitly trying to avoid with my design.
I must say in case it wasn't clear that i kind of abandoned this project a long time ago, basically other personal matters got in the way, and also most people seemed happy enough with the temporary Hydra solution for positional tracking, so no big incentive to go forward really. My main objective more than building an actual product was simply proving that it was a valid idea; after seeing the Crystal Cove prototype i believe i was not far off!
I guess with the Hydras being hard to find nowadays and the STEM and DK2 a few months away some people could still be interested in this, but i kind of lost interest myself.. Now that i have a little free time again i prefer to focus my efforts in building my own game; got some good ideas, but still in the process of evaluating different tools, engines, control schemes, etc.
Talking about that, my latest "crusade" is trying to convince the community / Oculus themselves that we need cheap optical motion controllers for PC, preferably if they were bundled with every Rift sold:
https://developer.oculusvr.com/forums/v ... =25&t=5912
Hopefully Oculus will announce something at GDC, but not letting my hopes too high about this!