A projected still or video image is controlled with light generated by a laser pointer, for example. A device with a projector and a display controller projects an image onto a surface, and an image sensor views the projected image. A handheld device outputs a beam of light. A controller receives information from the image sensor regarding the presence or movement of light from the handheld device interacting with the projected image on the surface, and a control function is implemented if the light from the handheld device interacts with the projected image in accordance with a stored predetermined visual interactions such as encircling, “scratching,” or other movements. The controller may be programmed to recognize light of a specific laser wavelength in conjunction with a control operation.