Augmented reality can be a weird thing to try to describe.
It uses what's around you and lays graphics or infomation over it. Sound boring? Well, let's use a real-world example. Just check out this new Star Wars game for the iPhone, which lays your surroundings behind a wicked space battle.
The game, Star Wars Arcade: Falcon Gunner, is coming out this month for the iPhone, and boy does it look awesome. Simply hold up your phone in front of you and your surroundings suddenly become the backdrop to a bunch of Tie Fighters getting pegged by you. What could be more fun than that?