Neat. I did something similar for my graduate thesis project a couple of years ago, but to play pool/billiards on the computer using real cue sticks (for practice and feel) http://mixedrealitybilliards.com
It's implied in the measurement video that he's feeding his captured data through a realtime 3D modelling/rendering tool. Does anyone know what that tool is?
On his page[1] it says "The 3D reconstruction code is entirely written from scratch in C++, using my own Vrui VR toolkit[2] for 3D rendering management and interaction."
a) His other video of the system where he shows that measurements of 3d objects exactly match real counterparts: http://www.youtube.com/watch?v=f1ieKe_ts0k
b) His homepage of other experiments: http://idav.ucdavis.edu/~okreylos/index.html