clipped from: www.garygraye.com In the demo, Milo is a young computer animated boy who interacts with Claire from Lionhead Milo Project Natal. She is able to see the emotion on his face and he is able to detect her tonality and emotion.
Natal is the interface that allows for this interaction. Based on what I saw in the demo Natal is incredibly impressive.
There is a point in the demo where Claire draws a fish and then the Lionhead Project Natal (interface) scans the image and Milo takes about it. Brilliant.