Wired.com has an article and video about Obscura Digital, a marketing media lab, which has developing a 360 degrees fully immersive interactive video installation for a party penthouse.
The videos are projected on all walls of the room giving a sensation of being transported to various locations and it picks up on conversation in the room and modifies the video to reflect it.
The system uses 10 computers, 11 projectors, has panoramic scenes and includes videos of dancers.