are you talking about the project by Mahesh Gudapakkam? That is actually the student I was referring to in the links above.
While he was working on his thesis he got very interested in visual programming languages and hooked up with Mitch Resnick on the scratch project. I think that scratch may serve as a useful example for you as it is limited in scale. I can imagine using it on a multi-touch surface in a way that I cannot imagine using Max/MSP or another more fully featured language without major modifications.
Some of Mitch’s earlier projects—like the lego mindstorms interface—might be helpful as well.
Mahesh’s project focused upon teaching core programming concepts, and visualizing those concepts—he spent many months just thinking about for loops—for non programmers. He did not create a full language, per se… he simply created a kit of parts common to all languages that could then be manipulated to create visual results.
I don’t have access to a full PDF of his thesis right now, but I can ask him to send me one if you like…
what is your goal for this project? are you looking to retrofit an existing language (like PD)? or are you going to create a language from scratch?