Take a look at Junaio Glue's new feature - the ability to recognize images in real-time and overlay objects on that image. The feature has been available for Android, but only with iOS 4 has the iPhone been able to do image recognition in augmented reality (AR) apps like Junaio.
Here is a step by step instruction:
  1. Download junaio from the App Store or Android Market
  2. Go to Featured Channels or search for the "junaio glue demo" Channel
  3. Open this channel and point your phone to the image above.
  4. Click the model appearing for further interaction.

Video demoes after the break...

<a href="http://dailyiphoneblog.com/2010/07/08/iphone-app-junaio-glue-image-recognition-technology-for-augmented-reality/">

[Read the original blog post]