Developed by a group of Canadians at the Human Media Lab at Queen's University, the Telepod is a cylindrical display system capable of projecting an entire person inside itself in three dimensions. This means that you can walk around the outside of the telepod, and it'll seem like you're walking around a person inside it at the same time. Watch:
It is pretty cool that you can walk completely around the person that you're talking to, just like they're standing right there, albeit inside a tube. It needs a little refinement, but this is one more virtual step in the right direction.