Inspired by the brilliant use of an age old concept in the recent OKGo 'WTF' video, I created this little open-source demo in processing. It works in real-time with a webcam. Check it out and download the source here. I tried to keep the source super minimal and as easy to read as possible. For better results, you can try running an erode and smoothing edges of the current processed frame. It also helps to run it in front of an empty wall with stable lighting, and ideally a webcam which has manual exposure / shutterspeed / gain etc.
http://www.msavisuals.com/xmas2009
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