Just came across the V Motion Project by Assembly which is a pretty cool use of the Kinect for creating music. Check out this music video with some dubstepping-hand-waving-DJing shot on the streets of Auckland,NZ.
“This project combines the collective talents of musicians, dancers, programmers, designers and animators to create an amazing visual instrument. Creating music through motion is at the heart of this creation and uses the power of the Kinect to capture movement and translate it into music which is performed live and projected on a huge wall.” More on the tech here.
Reminds me of a hands free reactable.