A professor sent me a link to the colAR App. I've had a chance to play around with it and I cannot wait to share it with my students. This app allows you to bring your image to life! By coloring a simple coloring sheet with regular markers, artists can interact with the images in a virtual 3D simulation on an iPad.
Other augmented reality apps:
iSkull AR (youtube video showing it off)
Spider-Man AR Book HD
Entire pinterest board with tons of AR applications
After you color the image, open the app, click on the camera button and the image will turn blue on the screen. After that, it pops up, coming to life!
<<<<<<<<<DON'T color the whole paper
<<<<<<<<<DON'T use dark colors on the background
<<<<<<<<<DON'T cover up the lines around the edges