This project has been mentioned enough places already I guess, but it fits too well to my research theme for me to leave it out: Morphovision by Toshio Iwai, shown at Siggraph and Ars Electronica last year. It is almost disturbing how frequency and patterns of light combined with motion make a solid model house morph into very liquid shapes.
“Morphovision is a unique display system that interactively transforms and animates a 3D solid object before our eyes. In this system, a model house is rotated at high speed, and is illuminated with special lighting from a digital projector. This enables the model to be distorted into various shapes.” More info here.
Video from Ars Electronica: