No-budget multi-touch interface?
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While it is tantalizingly low budget, you do still need access to an external iSight camera for it to work.
Something that's no longer made, very popular, and wasn't cheap when it was still made.
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If you can do it with a bag of dyed water, you should be able to do it 'for real' with a piece of frosted glass...
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He's got a little more info in the comments...
http://blog.medallia.com/2007/06/dyesight.html#comment-2078
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