What a jerk!! I'm not complaining though

Now that I think about it. The 360 would need to be on in order to process Natal output in order to do voice recognition. So I don't understand how Natal can power on the 360.

The 360 has background downloading to save on power so they could impliment something similar.
You can switch on your 360 with your wireless controller so it must have something that is always on waiting for an input.

Ah, I did not know that it was able to do background downloading.  Is this something you have to specify in an options menu?

But it's just an eye toy. Amirite?

This thing is going to rock sox.

yeah you have to go to system settings 

Sorry to derail my own thread :) But, if I were to add something to my queue online through the browser, would my 360 start downloading in the background?

Natal is a controller, and like the current controller it has its own power source so just like the current controller it can power on the 360. Tv remotes have been doing it for a long time so it isnt exactly new tech.

It isn't that simple.  Something has to process the audio using voice recognition.  You don't want your 360 turning on whenever someone says anything around the camera. 

You're right on this the same way you turn On the Xbox by pressing the guide button from your controller the same could be done by turn on your Xbox thru voice recognition via Natal.  Because both system (xbox and camera) has two independent power source the Xbox is in standby waiting for any input and like the controller the camera is also standing by for any given command to be sent to the console.

But I dont think background download has to do anything when the Xbox is standing by to be powered on. 

If you have a download pending thats when background download comes into work after your Xbox is turn off to save power.