[Slash Gear]

…the patented system generates an invisible 3D space in front of the user and allows them to work with holographic images. It can also project the user’s hands onto a screen where they can manipulate virtual objects.  …

Under this patent, the virtual items in this 3D space can include nearly any object that can be grasped and manipulated within the virtual space, including sheets of paper, hand tools, paint brushes, pencils, pens, knives, scissors, etc. …

This this full story here: http://www.slashgear.com/apple-patents-3d-display-with-holographic-images-and-kinect-like-gesturing-13179466/

See a detailed story on the patent with multiple diagrams here: http://www.patentlyapple.com/patently-apple/2011/09/whoa-apple-wins-a-3d-display-imaging-system-patent-stunner.html