There is real reality – the physical, touchable, face to face reality that you really don’t have to do anything to experience. There is virtual reality or a digital reality – the interaction with a real live person across the computer screen – and you may not know if what they are saying is consistent with their real lives. Nevertheless, you can interact with them or some digital data in a virtual space.
Augmented reality is when you “augment” or supplement your real life experience with real time virtual/augmented data or reality. Google Goggles (I’m not sure if that’s what they will call it) but take a picture of something real and it’ll bring to you information and reviews so that you can make a better decision.