It would be a little tricky though to track the eyes/head of the viewer to appropriately display the AR layer.
Those low resolution IR cameras must have been produced in such huge quantities I bet they are pretty cheap now. You can buy a Wii-mote for $50 retail and that includes lots of expensive hardware you don't need such as a bluetooth transceiver and a pair of accelerometers.
Check out his entire youtube channel, it is full of interesting software/hardware hacks.