Three key technologies influence the performance of current AR (Augmented Reality) system, namely image grabbing, accurate registration and binocular stereovision. This paper studies a vision-based AR system and its setup, presents an image grabbing solution using an IEEE 1394 interface, discusses the binocular stereovision technology and develops an effective Gauss-Newton iteration algorithm for registration. Experiment results show that the proposed method is computationally efficient and accurate.