This is a beautiful demonstration of augmented reality on a cell phone, as published in a recent article by Gizmodo. There is a video at the end of the article, which is really worth seeing.

It's hard to see, but notice how on the table to the right there is no action figure above the black and white grid, but in the phone you can see the little man. Augmented little man reality. That little pirate is cool. Actually, maybe that's a little Zoro.