Microsoft's Manual Deskterity project reveals pen and touch input, Courier's future?

Apple may have made its thoughts on the stylus clearer than ever at its iPhone OS 4 event, but it looks like Microsoft Research is intent on redefining what's possible with a little pen-based input and, if this recently-revealed video is any indication, we're not about to stop them. Dubbed Manual Deskterity, the project is currently based around a Microsoft Surface device, and shows how pen and touch input can be combined for a range of tasks that wouldn't be possible with just one or the other -- using a photo as a straight-edge (as seen above), for example, or using the pen as an X-acto knife to cut a photo while you hold it in place with your finger. Of course, while the project is currently using a Surface, it's hard not to see how it could also be applied to something like Courier, especially considering the strong emphasis on creativity that echoes the Courier demo videos. Head on past the break to check out the whole thing for yourself.