A first shot at implementing more complex interaction with the Kinect by the Institute for Creative Technologies at the University of Southern California.
They are developing the Flexible Action and Articulated Skeleton Toolkit (FAAST), which is middleware to facilitate integration of full-body control with games and VR applications. FAAST currently supports the PrimeSensor and the Microsoft Kinect using the OpenNI framework.
In this video, they show how FAAST can be used to control off-the-shelf video games such as World of Warcraft. Since these games would not normally support motion sensing devices, FAAST emulates keyboard input triggered by body posture and specific gestures. The controls can be dynamically configured for different applications and games.