For those of you who don't know, Baudrillard's idea of "simulacra and simulation" were used in
The Matrix.
Here is a link to an interview in which he talks about that. He is rightly unsatisfied with their take on his ideas. Yet, this does remain to be on of the most interesting parts of the movie.
All in all, Baudrillard has some excellent ideas on how we perceive reality. Once you get your head around what simulacrum really is, it will blow your mind. Maybe.
Another interesting thing he's done is the book
The Gulf War Did Not Take Place, in which he argues that the Gulf War wasn't really a war because it was so one-sided. For example, fewer US soldiers were killed in this "war" than would have died in traffic accidents had they stayed at home. This is because of the virtual nature of the conflict. Coalition forces avoided engaging the enemy where it was deemed too dangerous (i.e. someone might die).
In writing on Baudrillard's book, William Merrin deemed that Baudrillard considered the Gulf War "an atrocity masquerading as war."
This is a perfect example of simulacrum: the reality of something is so far removed--displaced--that we can no longer trace back to this reality. In a way, it can no longer be called "real."