I feel this interactive teaching along with traditional methods would be more beneficial to students.
My device will be a lot more simple than Layar but I still feel it will work very well.
I would probably use an iPhone if I could find a program that was viable.
The tables below are from a report by Carnegie Mellon University, in May, 1996, the report, lists different technologies and their impacts on medical equipment, I would have to consider this if I were making a piece of equipment for medical purposes.


The full report can be found here.
My other plan is a lot more simple, it is to create an interactive teaching resource, I am thinking of making it for children at a primary school age, I hope to get in contact with a local school have the kids test out products (after getting a CRB check etc) and work with their feedback, I feel this method of development has worked for me best in the past but I will go with an simple idea to begin with.
I feel possibly an interactive application related to space, or geography would work best as they have the potential to be highly interactive. As yet I am still working on what sort of device to use as iPhones won't be widely available in a primary school, if I can get my hands on a Head Mounted display that would probably be the best idea.
There is already an augmented reality device aimed at kids, the Avatar iTag, the child is given a tag which when put under a webcam turns into a 3D animated character, the user downloads the character and when they touch a specific place on the tag card it starts an animation.
This sort of technology could work for education but I feel it is more designed for the initial 'wow' effect so would need another element to keep children interested, possibly some sort of points system or virtual prizes.
I have found a tutorial, to design a program which does essentially the same thing, having watched the tutorial I believe it could be quite hard to achive as I have no expirence with FlashKit and the tutorial is quite advanced.
Augmented Reality Tutorial

I feel that a device like the eyetoy would probably be best in terms of usably and also being realistic for me to create. I will probably make a game which also educates the user, possibly in a similar style to the Poseidon: God of the Seas game, developed by Christian Cook, Gavin Jones and Paul Bird. The game user has to spell words in order to complete the game, this gives education a more fun side (fundication!).
Poseidon: God of the Sea
Below is a mock up of how it could work, its very simple and I'd want to include challenge rounds, possibly if the user reaches 1000 points they unlock a secret game.
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