The second generation of the projection tech does color: http://www.k2.t.u-tokyo.ac.jp/vision/dynaflashv2/index-e.htm... And they can now do the tracking without the infrared paint: http://www.k2.t.u-tokyo.ac.jp/vision/MIDAS/index-e.html
Very cool, a sort of live-action cgi capability. Hope it doesn't easily scale out to larger spaces and crowds, or the current tech industry would soon have public spaces filled with ads projected on peoples belongings.
Edit: discard this comment, I misread the parent comment.