At Computer-Human Interaction (CHI) 2010 conference, Microsoft Research showed off a technology it’s been working on for at least a year now, conservatively dubbed the “Pinch-the-Sky Dome”. Unlike mainstream 2D multi-touch systems or even Microsoft’s Spherical Surface, this system projects omni-directional imagery spanning 360 degrees onto the dome immersing the user. It allows them to navigate the virtual space using multi-touch gestures anywhere in 3D space. Since the system utilizes infrared camera that see wherever the image is projected, the user does not have to wear gloves, use special tracking devices and is not limited to gestures on a flat (physical or virtual) surface.
More Info: Pinch-the-Sky Dome (pdf)