I was just browsing the shmup-dev.com forums when I read about an algorithm to create and morph shapes dynamically developed by Paul Burke.
Curious as i am i followed the link to discover a vast collection of interesting articles.
The article that got most of my attention was about the iDome and the implemention with the Unity3D engine.
showcase
Unity3D implemention
I think the idea is ingenious, and possibly the most innovative thing since tilt sensitive game controllers.
He also composed a FAQ for you guys that are trying to rebuilt that thing. If i had the space and a projector, i sure would give it a try.
Also, if you are into game development or just curious by nature, you should check out his other articles. Theres some really interesting stuff covered.