We've seen flashy concepts of what Nokia's seamless cellular infotainment initiative might look like, but it took a pair of Germans from Volkswagen to give us our first glimpse of Terminal Mode in action. At MobileBeat 2010, engineers showed off the video after the break, which shows how a prototype VW Passat might be rigged -- in this case duplicating the phone's display in its entirety (plus additional controls) on the auto's larger touchscreen. Sadly, VW said the tech's still a couple years away from commercial integration into vehicles, though they expect to see third parties selling Terminal Mode add-on kits and the like a bit sooner.

Until then, Nokia and partner companies have to figure out how to encourage developers while simultaneously restricting apps that might distract drivers; VW reps told us that while you'll download car-compatible apps from existing app stores rather than a separate Terminal Mode marketplace, compatible programs will be categorized and restricted from in-motion use based on a set of still-to-be-determined rules. Nerd-to-English translation: don't expect to watch Netflix for iPhone on the go. Sans a hack, of course.