Kinect Sparkler, a Fun Labs product was announced just three days back -- in this video below, Steve give it a shot.
"this is my first take on some 3D Kinect art with a cameo from my Twitter avatar in the background. It's a good example of the finger tracking capability of Kinect and the 3D photo is pretty funky too! The only thing missing is the ability to embed the video direct from KinectShare.com," said Steve.
[Source:Next at Microsoft]