I don't want to see the people on Xbox Live. I prefer they live in my imagination with the sprites and fairies... but maybe you're different, and you want a special visual connection to the folks you're play parlor games with. If so, you need the Xbox Live Vision camera attachment for your 360.
The camera went on sale yesterday. The $39 bundle includes the camera, an Xbox 360 headset, and the games UNO and TotemBall. While the $79 version includes a year's Xbox Live Gold subscription, 200 Microsoft Points that can be spent on Xbox Live Marketplace content and Robotron 2084, in addition to the headset and other two titles.
Games that have been patched to work with the camera include Bankshot Billiards 2, Hardwood Hearts, Hardwood Spades, and Hardwood Backgammon.
Meh. I'll pick it up when we get on-camera strip poker.