Android Central's got a hands-on review of the new LG Optimus 3D, and it looks like it really does transport you into another dimension -- though it might not be that third one.
The phone's 3D essentially adds a layer of depth to whatever you're watching on your phone.
The phone also has a pair of 5MP stereoscopic cameras on the back (with a flash) that work in tandem to record 3D video and take 3D pictures. there's also a dedicated "3D" button where you might normally find a camera button that takes you to a special menu (in 3D). And the phone can also record 3D video in 720p or 2D in 1080p!