"Arturo Castro's real time face substitution technique"
An HN comment I found very interesting:
Real-time virtual puppeting has been done in movies/television and research for a while now and yes, it can easily fool people.
A professor friend of mine Jeremy Bailenson at Stanford actually uses the Kinect to track facial movements and uses 3D models of others to create puppets in real-time. Even more interesting, he can morph your face with the person you're video conferencing with to create a feeling of commonality in them.
He actually wrote a book on it called Infinite Reality  which talks about all kinds of ways people will probably get manipulated in the future. He talks about things like mirroring movements (which he can do automatically in a video conference), looking into the eyes of every participant in a group video conference and other really interesting psychological hacks.
Hacker News discussion thread: http://news.ycombinator.com/item?id=3022479