SvennoJ said:
It's the same technique. The Microsoft demo won't look right either if you move away from the camera position. It has to be calculated in 3D space for the spot from where you view it, unless Kinect is going to track you and adjust the projection in real time it's not going to work if you move around alot.
3D video mapping has been used since 2007 by VJs and advertising campaigns (projections on buildings). The innovative part here is that Kinect can scan the environment to do the 3D mapping and extending the tv picture is pretty cool. I guess the actual scanning will be more involved then the video shows, it would at least need to test the full color range to figure out the specific reflective properties of all the surfaces.
Here are some of the best video mapping demos: http://www.thecoolist.com/when-buildings-come-alive-10-unreal-urban-projection-videos/ It works better with buildings, bigger view area from where it looks right and the surface is relatively flat from the view distance. You only need upwards of $400k worth of 30k lumen projectors :)
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Kinect isn't used to track you. I suppose it could, in the future, but the purpose of Kinect is to determine the layout of the room. With the room, and everything measured in it, an image is created that is sent to the projector so that when projected the image is correctly displayed.