The 1.5 update for the Kinect SDK has been released to developers, and it adds a solid list of new capabilities, including something called Kinect Studio (that allows developers to record user movements and play them back for the code later), a development kit for Face Tracking (which enables Kinect to track facial features), and new Human Interface Guidelines and other documentation improvements.
But the marquee feature here is that Microsoft has finally laid to rest the question of whether the Kinect works when seated or not. Now there's a full Seated Skeletal Tracking mode, which only tracks a person's head, torso and arms. Microsoft recommends this not only for when games players are seated, but for any application where the lower half of the body doesn't need to be tracked. Finally, there are also new language packs. In addition to languages like French and Japanese, you get Kinect support for regional differences in languages, like English/Canada and English/Australia. Crikey, devs will be well chuffed about that, etc.