"Digital holography for 3D and 4D real-world objects' capture, processing, and display" (acronym "Real 3D") is a research project funded under the Information and Communication Technologies theme of the European Commission's Seventh Framework Programme, and brings together nine participants from academia and industry (see www.digitalholography.eu).This three-year project marks the beginning a long-term effort to facilitate the entry of a new technology (digital holography) into the three-dimensional capture and display markets. Its progress at the end of year 2 is summarised. © 2010 IEEE.