Here's a little demo vid I made:
http://www.youtube.com/watch?v=X4HOKgL_KzU
Special thanks to TRONIC.LK for introducing the low priced Arduino. It's so cheap yet works exactly like the original. Hoping to buy more servos (from TRONIC.LK of course) and eventually make it a full featured Kinect controlled arm

I'll post further progress here.