Gattis took out a digital camera and placed it on the Surface. Instantly, digital pictures spilled out onto the tabletop. As Gattis touched and dragged each picture, it followed his fingers around the screen. Using two fingers, he pulled the corners of a photo and stretched it to a new size. Then, Gattis put a cellphone on the surface and dragged several photos to it — just like that, the pictures uploaded to the phone. It was like a magic trick. He was dragging and dropping virtual content to physical objects. I'm not often surprised by new technology, but I can honestly say I'd never seen anything like it.
The initial plans for the device are commercial ($5,000-$10,000) tables not intended for home users. "People will see it in public spaces like bars and restaurants and want to expand it into other environments."Apple has incorporated Multi-Touch into the iPhone, which is expected to be launched at the end of June.
Update: Microsoft's official site for "Surface" is now available.
Update 2: Another Video from CNet.