I'm going to be continually updating the OP to show the four most interesting videos of kinect being hacked at any given time. I would add more since their all so interesting but I don't want to overwhelm anyone new to the thread. If your interested I will leave the URL link for the other videos at the bottom of the post.

The hackers have made some major advances with kinect since I originally posted this thread. From what I've seen I now believe that it is possible to use multiple kinects (with either software or hardware modifications to prevent IR interference from multiple cameras) to map a full 3d area. Undoubtedly this will allow for the creation of some impressive software.

I'm pretty sure at this point that kinect will sell very well to a PC market, especially to those people involved in robotics, indie game development as well as interface and UI design. 

I can't wait to see what indie developers do with kinect on XBLA!

http://www.youtube.com/watch?v=N9dyEyub0CE

http://www.youtube.com/watch?v=Q1heqFVrQGU&feature=player_embedded

http://www.youtube.com/watch?v=rKhW-cvpkks&feature=player_embedded

http://www.youtube.com/watch?v=YB90t5Bssf8

Marcan is a very intelligent person. First the Wii, now Kinect... I don't know why he isn't hired yet.

I remember Bill Gates saying that Kinect was not only a Xbox tech but a PC one as well. Gave me a lot of hope, however with its space requirements my hopes quickly fell (it's probably why we havent seen a motion device for the PC yet). This though gives me hope and i might get one when it hits sub $80 or so.

I had high hopes for Natal based tech compatibility with Win7, even if for nothing more than to play around with as a UI device.

Given the focal length of the lenses Kinect uses and that the design is set up for a living room rather than a desktop (look at the IR projection pattern when viewed through night optic devices; it doesn't start until it is at least 3 feet away from the camera unit), it wouldn't be practical as a desktop input device, not that the same technology couldn't be used in a Win7 compatible desk cam (preferably a lot smaller).

The applications would be different too, so no Kinect Adventures in front of your desktop PC. I'm thinking more along the lines of 3D scanning, voice recognition/voice commands, sign language interpretation, general gesture based user input commands, user facial recognition, etc.

I edited the OP with another video. Marcan has apparently already made the news twice with his kinect hack. I'm pretty amazed at how quickly their progressing with their hacks.

wow thats amazing what it can do...I wish I was bright enough to hack kinect, I bet I cant even open one lol

One of the reasons I was so excited about kinect was that I thought it would be a great addition to the computer (along with kb mouse and game pads). Hopefully they come up with some cool stuff.

Because he's reverse engineering what Wii and Kinect developers already know I guess.

It would be awesome to have eye tracking from a Kinect PC unit. since it would work on a smaller scale, it would be precise enough to know where are you looking at. And that would be the shit for FPS games. No longer the camera movement is attached to aiming.

I keep on saying this. But I don't see Kinect as only a gaming accessory, but more importantly I see Kinect as an entirely new interface for general use and immersion. As some one above mentioned. Use Kinect to track movement of the players, but you would still mostly play with standard controls. As an entire controller. Not so much except for a novelty game here and there.