Evening Bob,

I went a slightly different route.  In org.openscience.jmol.app, I created a tiny class ImageFeedback extends JPanel.  Its JFrame isn't visible until setImage(BufferedImage) is called.  JmolPanel creates an ImageFeedback when the entry in Tools is selected and passes it on to the viewer via the new JmolViewer.setImageFeedback(ImageFeedback).  JmolOpenNIAdapter now has access to viewer.imageFeedback and can call setImage() in the OpenNI update loop.

This is ready to go - I delivered a beta version to our chemistry department with everything except ImageFeedback.  My work is based on Jmol svn commit 7ae3f6dee82a027a8437a4edc760c6c53aac937a (September 8).  My changes to existing code are pretty minimal, so I don't expect any issues when I update and rebase.  I've read the Jmol Developers' Guide; what else do I need to know about committing?

One issue: in JmolOpenNIAdapter.setMultiTouchClient(), I call viewer.setSelectionHalos(true), but this doesn't appear to work.

The code has much more documentation than the last time you saw it, but it's lacking in end-user documentation.  A formal user manual is on my todo list.  I'm also planning to write an announcement and call for testers to post to Jmol-users; this will contain an updated version of the below instructions.

1) To see the live image captured from the sensor, go to Tools->OpenNI Image Feedback.
2) Stand in front of the sensor and perform a Click - move open hand straight toward the sensor and back.  This hand is the primary hand.  Use it to select the current action by making gestures.
3) Move your other hand into the scene until it's recognized - NITE can be finicky about this and sometimes gets into a create-destroy cycle with the second hand.  It takes some practice to find optimal distances from the sensor and between your hands*.
4) Perform a Push (same as Click) with the primary hand to enter selection mode.  A cursor will appear in the Jmol viewer.  Move the secondary hand  to the desired target and perform a Push with the primary hand to select - default is to select all atoms within 20 Jmol units of the selection cursor.
5) Swipe the primary hand up to do a selectAll.
6) Swipe the primary hand down to do a selectNone.
7) Wave the primary hand (a Wave is at least l-r-l or r-l-r) to enter translation mode.  Move the secondary hand to translate all selected atoms.
8) Move the primary hand in a Circle to enter rotation mode.  Move the secondary hand to rotate all selected atoms.
9) Repeat 4, 5, 6, and 7 as desired.

Note: You must install OpenNI and NITE first.  I highly recommend using the unstable versions.  I successfully followed this guide for OS X.  The process is similarly documented for Windows and Linux elsewhere on the web.  For Gentoo Linux users, I've got some ebuilds that I'll try to get into an appropriate overlay soon.
Note: You must find the file Hands_1_5_2/Nite.ini (location differs by platform) after installing NITE and remove the leading semicolons from AllowMultipleHands=1 and TrackAdditionalHands=1.  This software will not work without that change.
*Note: HandTracker spits out a lot of useful information when its field info==true (default: true).  Open up Help->Jmol Java Console to see it.