I am a little confused on a particular config on the Kinect, when it comes to chatting.
If you go to the settings, there is a way to turn 'Microphone on/off for chat'. When I set up my nephews, I left this on, and I am pretty sure that when we played some CoD:Black Ops that night - his kinect was picking up noises in their room and everyone in our game could hear it.
When I set mine up, I had this off.
When we tried to do a Kinect Video chat last night, and it shows your face (while waiting to connect), it noted that my microphone was off. So I went and turned this on in settings, and went about using the Kinect video.
My real question is: How do I set this up so when I do a video chat it works, but when I am just in a game I can use a headset or nothing at all?
Note: There is a slim possibility that he was wearing a headset (and his kinect was not picking up audio), but it was picking up in game noises and rebroadcasting them - and he's far away enough TV that shouldn't matter.