I don't quite know what to make of this. There's a prototype of a product called The Bluebook which is basically a normal paper based book printed with conductive ink.

In the back of it (or embedded in the jacket/spine) is a bluetooth chip. When you put your finger on an outlined section of text, the book sends a message to a nearby PC to do something, i.e. open a web page, play a music file or video, delete the contents of you hard disk, etc.
Have a look at the web site for some pictures of it and you'll get the idea.

There's a range of kids books that use a similar concept (the Leap Pad series) that works of spatial recognition and plug in cartridges instead of bluetooth/pc links. They work fairly well because the system is self contained and it's portable.

I don't know about the Bluebook though - reading a book within 10 feet of a PC is not my idea of fun. I think electronic ink might be a better basis for this sort of thing - just because the Sony Reader hasn't been successful doesn't mean the idea is wrong (anyone remember the state of mp3 players before the iPod?).