We’re not developers, but apparently the Windows Phone 7 operating system doesn’t allow for direct access to the camera. Thus, a hack is required in order to develop third party apps that utilize the camera. One development company has hacked their way through WP7 to provide a glimpse at how augmented reality apps might look on Windows Phone 7. With any hope, Microsoft will remove blocks to the API’s needed to develop these sorts of apps, allowing developers to further push the envelope.
Augmented Reality is one of the fastest growing areas in mobile.
To get that demonstration going, developers would have had to create an elaborate hack to get to the video camera, which is otherwise locked and unavailable to 3rd party apps, for unknown reason. The compass is also locked and unavailable to developers (the above video didn’t access the compass).