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Until you can find a link that says it can't I am going to believe this

Wrong, the project's director, Kudo Tsunoda told me. He had me look at a special display set up as part of the ball-ricocheting demo. What I saw proved how clearly Natal was easily reading both my body and his as we both stood in front of the sensors. We appeared on screen as simplified, mutli-jointed stick figure skeletons within silhouettes of our bodies. It clearly saw us as separate people. There would be no problem, he said, for the system to support a game that let us play at the same time and track our movements separately.


http://kotaku.com/5279531/microsoft-project-natal-can-support-multiple-players-see-fingers