This is by far, the best (IMHO) use of Kinect on Virtual Game. Developer Nao_u has done himself proud by making a Virtual World and walking on it in a female character (Vocaloid’s Miku Hatsune).
If this hack is applied to Second Life and with its Mic input, it will literally put you into the malls, island of the virtual world. Watch the video on how Nao_u has managed to get “into” the body of Miku Hatsune and walking on a beam at a high rise building and falling from it.
Kinect is really amazing product from Microsoft. My body has been aching with the games and exercises I played on it 🙂 .