http://www-bcs.mit.edu/people/adelson/checkershadow_illusion.html
The squares denoted by A and B are actually the same shade of grey. Really cool!
Here are some animated examples
http://www-bcs.mit.edu/gaz/main-frameset.html
And here's the indepth analysis (warning: eye-glazing technical stuff ahead...)
http://www-bcs.mit.edu/people/adelson/publications/gazzan.dir/gazzan.htm