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