I'm not too sure that I'm allowed to say too much about this but....
Last time I was in nVidia's private demo room (we have an awesome relationship; I get tours of their new technology (2, 3 + years ahead)), they sat me down on a sofa, and handed me a pair of polarized glasses. They booted up a machine attached to a 60" (LCD I'd presume) display, and showed me some video games. They said that it was simply software running in the background, and wasn't game specific (using some type of technology to pick out distances, I suppose.) What I saw was a completley 3-D gaming experience. The HUD in a game was closest to me, with objects getting farther and farther away, to the point of the screen and even further.
So in short, YES, I have seen this work. I hope I haven't violated any rules by talking about this (if you work at ATI, please, pretend you didn't just read that

)
I got to keep the cool nVidia polarized glasses for free! (Cardboard with clear polarized lenses in them.
-Jacob
EDIT: I lied. (I took that tour about a year ago.) They apparently have the software out for release to the public (
http://www.nvidia.com/object/3d_stereo.html ). In this version, apparently, red/blue glasses are required.
EDIT2: It appears that this driver is currently compatable with the following:
Supporting Displays
* Passive polarized stereo displays
o Zalman Trimon ZM-M220W (22 inch 1680x1050)
o Zalman TriMon ZM-M190 (19 inch 1280x1024)
o Zalman HDTV LCD (1366x768)
* Anaglyph display with red/blue stereo glasses
So, for someone more experienced than me, does this mean that you could use a regular TV with red/blue stereo glasses, or use one of the Zalman TVs with polarized glasses?