The prototype hardware running Glass is not ideal for AR but it appears to be technically possible and obviously very useful.
http://www.slashgear.com/google-glass-augmented-reality-gets...
http://www.popsci.com/technology/article/2012-02/video-nano-...
Below would be the goal. The story is slightly cynical but the AR games and even pictures on the walls are very cool. http://www.youtube.com/watch?v=GJKwHAvR4uI
See this for more background on why it won't be anytime soon. http://blogs.valvesoftware.com/abrash/why-you-wont-see-hard-...
See these for even more background