This was the "technology" used for the invisible car in the latest Bond flick.
It seems quite feasible, but it also seems to require extremely precise imaging technology.
I also saw a documentary on TLC a few years ago about future battlefield technology. They showed a rough version of how it could work as perfect camouflage fatigues on the battle field.
As the computers get smaller and more powerful, the technology will arrive.
(The Predator that Schwarzenegger fought was from the future, that's why he already had this.)