The invention provides a system and method for enabling manual sorting items to one of several designated areas associated with delivery destinations. The system includes a conveyor for transporting a stream of items. A video camera is positioned to capture an image of an observation zone to read destination data on the item as it is transported on the conveyor and the location of the item as it continues on the conveyor. A control computer is used in which destination data is stored associating the destination data for an item with a location of the item on the conveyor, and operable to track the location of the item by video tracking with the same camera as the item moves out of an observation zone into an unloading zone. A video projector projects an image onto the item on the conveyor in the unloading zone that includes human-readable instructions for disposition of the item.