SwissMoose

This is so much less impressive then what Activate 3D is doing. Combining the natural motion the user expects to do with 1-to-1 is where the user actually gets immersion. Watching your accurately tracking avatar shifting to a rag doll getting hit by a car like GTA4 would be great.
http://www.joystiq.com/2011/01/29/kinect-hacks-monkeying-around-with-1-1-movement/