Microsoft researchers show off intuitive stylus, don't know how to hold a pencil (video)

At this week's Microsoft promotional bonanza, otherwise known as TechFest 2011, a team of researchers debuted a rather shabby looking capacitive stylus that switches between functions based on your grip -- an interesting addition to a rather stagnant market, sure, but there are still a few kinks to be worked out. The multi-purpose tool enlists capacitive multi-touch and orientation sensors to respond to how you hold the thing, allowing you to perform a number of different tasks with a simple repositioning. A demo video of the stylus at work shows a disembodied hand switching between a pen, an airbrush, a compass, and even a virtual flute with ease, but while the project stresses the "naturalness" of the experience, we're pretty sure nobody sketches quite like that. Check out the video after the break to see what we mean.