The shift project from Microsoft research has a goal that may not seem lofty at first, but could possibly help shape cellphone touchscreen technology in a big way. Traditionally, with Windows Mobile phones and other touchscreen phones, you have to use a stylus because your finger is too fat and unwieldy. Even Apple's iPhone, with its crazy gropeability, doesn't solve the problem of your finger being in the way of what you're trying to click.
Microsoft's Shift, on the other hand, re-creates whatever's underneath your poker so you can actually see what you're clicking on. Plus, there's added visual feedback so you can narrow down your inputs as well. Check out the video on their site for a closer look.