This is called EyeMobile Engine. Its described as "a virtual reality technology that utilizes the camera in mobile devices to control movement in gaming and navigation."
I'm told that the EyeMobile Engine will include three ways to track movement - Shake, Rock, and Roll.
"By shaking the device it will determine the amount of motion in the camera image," my source tells me. "Rolling the device determines the motion direction and scrolling function while rocking it interprets specific gestures (right, left, up, down) to generate more traditional cursor style commands."
EyeMobileEngine will be formally introduced at the CTIA show later this month in San Francisco. You can bet that's one booth I'll be stopping by- and letting you know all about it.