Here is an update on RFID technology and the latest research efforts to improve the technology, from the AP:
RFID uses a computer chip the size of a grain of rice to store data, which are transmitted wirelessly by a tiny antenna to a receiver. The chips, embedded in tags, now track pallets in warehouses and let drivers pass toll booths without stopping, but its potential is almost limitless. To accelerate deployment, the University of Wisconsin-Madison formally opened a lab this month to study how to make RFID work better, leaving to others to debate the broader issues such as implementation and privacy.