Computer nerds are doing some amazing things with the Microsoft Kinect hacks. The video below shows off a 3D video chat where one party is placed in a virtual office. According to its creator, Oliver Kreylos of UC Davis, the virtual chat allows participants to establish more realistic eyelines, as well as just being freakin' cool as hell. It uses two Kinect cameras and a Wiimote for head tracking.
Check it out:
Here's some technical stuff I don't really understand, but...
"The network protocol uses lossless compression using a Hilbert-curve traversal and run-length and delta encoding for the depth stream, and a Theora video codec for the color stream. The resulting bandwidth is about 750 kB/s for one Kinect camera."
I love a good Hilbert-curve traversal!