My setup is pretty crude, but it worked for a good test run. The acrylic screen is only 15" inches, but I was pretty surprised at how close I could get the projector. My home projector only needed to be about 3 1/2 feet away.
Here's the setup I was working with.

I had the screen setup vertically, but the fingers didn't give it enough pressure for my FTIR setup. I had to press my fingers a little harder than it was comfortable, but I think gravity would make this much easier once the screen is horizontal.
The hardware responded a bit slow once I got it running. You can see a few points were missed in the picture below.
Overall though, the project is looking good. The touchlib framework acts as a web server, so the multitouch is compatible with any programming language. You just need to connect to the proper ports (3000/3333), and any C++, Java, or Flash application can work with it. Technically you can interact with other computers across the network, but if the reaction time is less than a fraction of a second it'll feel wrong.
Next steps are to build a cage and look into getting a faster IR camera.