An interactive image projecting device that projects an image onto a display surface and controls the projected image based upon the detection or identification of the device housing or the remote object. The device has a touch-sensitive, flexible housing that may be transformed into different shapes. The image projecting device includes a projector that generates an image from a control unit. The device includes an illuminating emitter, which illuminates the device body and remote objects, and a light sensor that is operable to detect the position of its housing or remote object. Based upon the sensed housing or remote object, the control unit operates to modify the image projected from the device such that the image from the device can interact with its housing or remote object.