Microsoft has shown us Kinect Fun Labs, describing it as "the place to check out the best innovations for Kinect". The Fun Labs are set to be a permanent addition to the Xbox Dashboard, and you'll be able to check out various indie and user generated additions to the Kinect library.
Among the features scheduled to appear in the Labs, "Kinect Me" made the largest splash among conference attendees. It's a scanner that auto creates an avatar using the camera, and impressed us by not only capturing the face of a woman during the demonstration, but also succeeded in recreating her clothing.
Next we saw "Kinect Sparkler", a tool that will allow users to draw in the air using there figures. We were shown someone drawing both in front and behind his own image, in 3D. He was able to manipulate the angle of the image, and move it around in space.
Last was a presentation of "Googly Eyes", in which we saw a stuffed animal scanned, front and back, transform into a animated, digital duplicate. We were told that this will finally make good on the promise that Kinect users will be able to "...scan in your skateboard and skate around a park."