Just a few weeks ago, a guy called Oliver Kreylos managed to get the Microsoft Kinect to track him and put him in a virtual setup where a live video feed could be manipulated to rotate around himself. The effect was amazing to watch. The downside is that anything past what the Kinect could see was just left blank. To get around this, Krelos connected two Kinects together to fill in some gaps that were created when rotating around a person.
Kreylos is back again and this time is using a couple of Kinects to create a virtual 3D video conferencing system. The system is capable of transmitting the data from the two Kinect cameras over a WAN and lets the person receiving the video call manipulate the virtual scenery by rotating around the person talking.
Navigation works by using a Nintendo Wii Controller and by tilting it in various directions you are able to rotate around the head of the person on the video call.
Check out the video below as well as a second video that uses another 3D world with a couple of characters.