Using the Kinect with Willow Garage ROS as a Master/Slave Robot Control (Video)
Taylor Veltrop explains and demonstrates his Master/Slave implementation of the Kinect with the Willow Garage ROS system to control a Kondo KHR-1HV humanoid robot, including a few surprises. 
The contest description says:
“We invite you to combine an RGB-D sensor (e.g. Kinect, PSDK5.0) with ROS to produce something new, interesting, and fun. It could be anything, from a novel robot control interface to a data-driven art project to pure computer vision. Bonus points if it's also useful (see below). We're offering $8K in prizes. We encourage participants to share, and our rules and judging will reward participants who act in the spirit of collaboration.”
Pretty sweet with $8K in prizes. 
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stupid MS should release an official SDK for Kinect on Windows