At sixth annual TechForum event, Microsoft demoed some of the advanced Kinect capabilities like accurate hand gesture recognition, etc,. Microsoft Kinect is already capable of detecting body movements and now Microsoft has improved them to make it recognize hand gestures such as opening and closing the palm. You can now use Windows 8 fully controlled by Kinect and it looks cool.
Check out the video above. I guess these features will be part of Kinect 2.0 which will be released along with Xbox vNext.
Source: Microsoft Research