Though much of the work being done in augmented reality has thus far been of the gimmicky, flashing, ad-centric sort—more proof of concept than truly functional—the clever iPhone developers at acrossair are putting it to fantastic use with their new app, Nearest Tube. Taking advantage of the iPhone 3GS' integrated compass, Nearest Tube merges GPS, compass, and video camera data to create a real-time overlay of the position and proximity of, as the name implies, the nearest tube stations. The application is still pending Apple's approval for the App Store, but the video below speaks for itself.

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