If that's true then it sucks but MS says it is not true.
Quote:
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The comments recently about the play space for 'Project Natal' were misinterpreted. It is true that the 'Project Natal' sensor reads the configuration of your room and adjusts play space, as appropriate. We know that living rooms come in all shapes and sizes, and have conducted numerous play tests to ensure everyone will be able to jump off the couch and into the fun when 'Project Natal' launches globally this holiday.
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http://xbox360.ign.com/articles/107/1079611p1.html