The basic explanation of Augmented Reality is to superimpose graphics over real-world environments in realtime. In Flash, this is usually done with a webcam and a marker card. When you hold the card up to the webcam, Flash is able to detect the orientation of the marker and superimpose, in this case, a 3d model ...

Papervision3D is a high performance 3D engine for Flash 8. It features linear texture mapping, optimized for rendering speed and quality. It’s also been designed to be simple and easy to use.