The haptics community web pages have a good selection of research papers, particularly on hardware. The page does not seem to be maintained however.

McGill Center for Intelligent Machines Haptics Laboratory works on the engineering and design of interfaces that use touch during interaction with information systems.

Millersville are doing research into using haptics in the medicine.

From Sci.virtual worlds newsgroup.

UK Haptics develop virtual reality training solutions for practice based learning and skills rehearsal in medical and clinical situations using 3D virtual environments to create life like simulations.

Doctoral research paper looking into the way our spatial cognition, the way we process and negotiate space, is mediated by touch.