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MPX modifies the X server to provide multiple cursors and keyboard foci. See http://wearables.uni sa.edu.au/mpx/. You can use applications with multiple mice and type into multiple apps at the same time. All the apps are standard apps as provided on a Ubuntu linux desktop.
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MPX now supports multi-touch screens. A new type of event has been added and can be used from touch applications. Automatic pointer emulation allows to use any X application. And MPX enables multiple users to use the desktop simultaneously. http://wearables.uni sa.edu.au/mpx/
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Using X from git-master (which has mpx) + David Reveman's patches for input-redirection. I patched freewins to use IR (though atm it is a rather hack-ish)
Unfortunately I had to use a camera, as gtk-recordMyDesktop was causing kernel panics, and istanbul wouldn't compile (and I didn't feel like trying any more...)
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MPX 550 into a crappy little Vox Pathfinder 10 amp. Sorry about the weak audio I recorded it on my digital camera. I just wanted to show you it worked fine.