There were many cool demos at ISMAR this year, and you can check out the description of them in the conference schedule. In this post, I've included a few photos and a video of some of my favourites. Click through the images to get a brief description. EDIT: You can also visit this blog post by Tom Carpenter to get a more detailed description of what you see below.
Object depth and shape extraction for Augmented Reality Interaction
Put a Spell: Learn to Spell with Augmented Reality
A Mixed Reality Painting Experience for Physical Rehabilitation
Computing Alpha Mattes in Real-time for Noisy Mixed Reality Video Sources
ProFORMA: Probabilistic Feature-based On-line Rapid Model Acquisition
Animatronic Shader Lamps Avatars