eMagin Corp, an outfit that makes video gear for military and industrial purposes, has developed a wearable headset system, which plugs into a video iPod; and using optical technology, gives the picture a higher resolution making it appear larger than on the iPod screen.

The company says that using this system, dubbed the EyeBud headset, is akin to watching a 105-inch display from 12 feet away, thereby enjoying a home-theater kind of experience.

eMagin’s new system uses a separate control module, which is about the size of the iPod, including a re-chargeable battery pack.

Although the headgear is likely to attract curious looks when worn in public, eMagin maintains that people will soon get used to the appearance.

The EyeBud 800, scheduled to debut in the first half of 2006, is expected to retail for $599 - almost $200 more than the cost of a 60-gigabyte iPod. eMagin will show-case its products at the ongoing Consumer Electronics Show in Las Vegas.