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Based on this cnet article the system is confirmed as an addon for the 360

Microsoft Xbox Senior Vice President Don Mattrick did state that Project Natal would be compatible with every Xbox 360. But he didn't address how much it would cost, or whether it would be backward compatible with older Xbox 360 games. And afterward, Microsoft could not provide any additional details about the technology.

And also that SDKs are already going out:

On-stage at E3, Mattrick said that the Project Natal software development kits had just gone out. This means that while most of the video game world is in Los Angeles this week for the show, few people have had a chance to see it.

One who did get a sneak peek at Natal is Epic Games Design Director Cliff Bleszinski, the visionary behind "Gears of War."

"I had a chance to be hands-on with (Natal) a couple weeks ago," Bleszinski told CNET News, "and it was damned fun." But even Bleszinski said he hadn't gotten his hands on a SDK yet, and wasn't able to say anything about the development process.

I think you'll find this is far more real and possible than you have necessarily thought before.

I don't doubt there'll be annoyances and quirks with it, but by and large, I certainly, certainly welcome this as a direction to head in

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why you are very much welcome sir!

In reply to this comment by Krupo:
3 months ago I fell behind in sifting - I may have missed this promote - thanks!

In reply to this comment by Zonbie:
*promote
I think Gears is great

3 months ago I fell behind in sifting - I may have missed this promote - thanks!

In reply to this comment by Zonbie:
*promote
I think Gears is great