This is the coolest Kinect Hack I’ve seen so far. The project called “Kinect Fusion” initiated by was shown at the ReserachSIGGRAPH computer graphics conference in Vancouver, B.C., and you can see it in the video below. With that integrated into a mobile device AR really would start to make sense. Interesting also that you should be able to increase the resolution of the scan by scanning the scene multiple times.
Engadget has some more Details on the Presentation given at SIGGRAPH.