Blobber

(more pics here and here)
Given a webcam, projector, and a computer, the idea is to track lights/colors with the camera and then project "reactions" onto a large surface with the projector. Right now, a framework has been created to allow the creation of modules to handle output "reactions" based on what the camera sees. These modules accept as input the pixel data from the camera and can draw the reactions on a projection screen. Many modules can be loaded at once. You can also easily create your own modules.
We have a simple L.A.S.E.R. tag module, as well as a multipoint tracking module. We are working on some game modules, including pong, space invaders, and others. Right now we're getting some mobile equipment (a tricycle with a small trailer and portable generator) together - eventually we'll be moving around downtown tagging anywhere that looks like it could use some love.
This project was initially inspired by the Graffiti Research Lab's L.A.S.E.R. Tag project, but we wanted something more extensible (for games and more), smaller (no reason this software should need to play music), and that would run on Linux (don't wanna pay for a Micro$oft license).
There are no stable releases yet (one is planned for late October - but you can always play with the current dev version), and for the time being, it only runs on Linux (there are plans to port to the Mac). More information, including access to the source, can be found at http://trac.butterfat.net/public/blobber.
Blobber has been developed in conjunction with the Charleston, SC Linux Users Group.
Here's a video of the software in action. Toward the end you can see us painting with LEDs.