Students at the Graz University of Technology has created an Augmented Reality Framework which runs very well on the average Windows Mobile smartphone. Augmented Reality supplements the real world with electronically created graphics and information, and normally needs rather powerful hardware.
Their solution, which can recognize graphics and objects in the real world, like pictures and business cards, works very well on even mid-range smartphones like the Motorola Q.
The business card version is particularly cute, and one wonders why no-one has implemented the technology commercially yet.
Read more about the project here.