Julie Wang from Cornell University developed a Bruce in a box augmented reality project for her ECE 5760 final project:
My system makes use of a variety of digital signal processing and computer vision techniques, resulting in a robust and reliable system. The hardware I utilized was the DE2-115 board by Altera, a Video Camera, and a VGA monitor. All of the functionality of my project is achieved through custom hardware written in Verilog. There are an extensive number of modules, and each one is designed to be as modular and parameterizable as possible.
Via Hacked Gadgets.
Check out the video after the break.


Cool, but would have had a better result using an image reference (similar to QR) rather then a big green square. It would then be able to adjust much better for scale and up axis.
They use this technique for other ar projects.