Take a look at the debut trailer for Steel Battalion: Heavy Armor, coming to you from Gamescom in Germany. New details are hitting as I write this as well, so refresh this for an update.
The short-short version: the game will use a standard Xbox 360 controller for mech movement; Kinect for starting the engine, using a turret and other stuff.
Capcom describes the new singleplayer game as a "first person action game". It's set in 2082, in "a world devoid of semiconductors, where war is waged with rudimentary weapons as new superpowers for dominance. In a twist of fate, the US army has been forced to begin major landing operations on what was once its own soil."
Players control "Vertical Tanks", which series fans can think of as mechs. Capcom explains that players will use an Xbox 360 controller for "VT movement, aiming and firing of the main guns". They will use upper-body motions, detected by a Kinect, for a variety of commands, "from starting the engine to operating the scope or manning the turret-mounted machine gun".
And here's a weird bit: "Kinect for Xbox 360 also provides a means of interacting with your fellow crew members, from ensuring a panicked crew member stays focused, to a high five for successfully completing a mission."
The game is set for a 2012 release. Capcom is expecting an M rating. The game requires Kinect.