For many touchscreen applications, fingers are your best bet. For others, the precision of a stylus is required. Microsoft shows how using both in conjunction might be the best option of all, delivering users to digital scrapbook nirvana.
The demo shows how a finger and a stylus can be used together to manipulate digital objects in a variety of interesting ways, quickly copying them, stacking them, slicing them or tearing them apart.
"Manual Deskterity" - that's the name of the software, not the person who created it - is here shown on a Microsoft Surface display, though this type of thing seems awfully well-suited for the type of scrapbook interface we saw in Microsoft Courier leaks last November. [YouTube - Thanks, Martian Yeti]