
Allmost all the 3D setups displays Your games from 2 different views simultaneously - left eye and right eye. The 3D glasses then filters the left image to the left eye and the right image to the right eye. This is the same technique IMAX3D, Disney, Dolby 3D and RealD use in 3D cinemas. Suddenly the flat monitor no longer looks flat, but rather like a window through which You see the 3D gameworld. You can actually create Your own IMAX3D at home using 2 DLP projectors, a silverscreen and polarized glasses.
If You have never seen 3D in games then put on some red/blue glasses and watch these videos:
You can download a 3D driver here: the iZ3D driver - just install it, change 'NSMode' from '5' to '2' in the 'C:/Program Files/iZ3D Driver/Config.xml' file (Win XP) using Notepad (For Win Vista the path should be C:/Program Data/Application Data/iZ3D Driver/Config.xml according to the friendly iZ3D guys), put on some red/blue glasses and start gaming in 3D (in games without PunkBuster). Works with both Nvidia and ATI cards.
Nvidia has for some years made a 3D driver for their 5, 6 and 7 series graphics cards to be used with CRT/tube monitors, head mounted dispalys, dual LCD monitors or projectors. However now they have teamed up with Zalman and their new 3D LCD monitor:
Their 3D drivers can be found here: Nvidia's 3D drivers
In 2007 iZ3D released a 3D LCD monitor and their own 3D driver.
There's some new head mounted displays available as well, and movies like Beowulf and future movies from Dreamworks and George Lucas will be in 3D.
You can get an idea of what 3D looks like in the image below.

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