1. An interactive input system comprising: computing structure; and an input device detecting at least one physical object carrying a recognizable pattern within a three-dimensional (3D) input space and providing output to said computing structure, wherein said computing structure processes the output of the input device to: recognize the pattern carried by the at least one physical object in the 3D input space; and modify an image presented on a display surface by applying a transition to digital content associated with the at least one physical object based on a detected state of the at least one physical object.