This is the V Motion Project, designed by some Kiwis as a means of creating "music through motion". It uses Microsoft's Kinect to capture the body movements of the "player", and then recreates them in giant-size up on the wall, adding a futuristic overlay to let you see what you're doing.
It's Rez meets Minority Report, basically. Which is way more interesting than a lot of other Kinect stuff we've seen lately.
V Motion Project — Part I: The Instrument [Custom Logic]