My Favorite Links from Eva Hornecker's Tangible Interface Links:

MIT Tangeble Media Lab:
I/O Brush
egaku
Phoxel Space
Actuated Workbench
Urban Simulation
HandSCAPE and GeoSCAPE
PingPongPlus

Other MIT Media Labs:
Swamped by Synthetic Characters Group & Vision and Modeling Group

The University of Tokyo, Interaction Technology Laboratory:
Hotaru
A few of their other projects look great but the links are broken

Royal Philips Electronics:
Nebula
A lot of amazing philips designs seem to be a few years off.