A.C.
We bought a Kinect this weekend and LOVE LOVE LOVE it. We had debated between Kinect and Wii and I am glad we chose Kinect.
The only drawback I can see is that it is a new product and there are not as many games available. We bought the Wii a few years back when it was brand new and got rid of it because there were so few games at the time. We are really excited to see what gamemakers come up with for the Kinect. So far we just have the game Kinect Adventures which I believe comes with it. It has a few games such as Rallyball, a river rafting game and an obstacle course game. The games are easy for young children to play. The sensor is amazing! It can read all your body movements and even takes pictures of you during the game, so you get to see photos of your funny moments during the game. I did the games instead of a workout yesterday and I hurt everywhere! It is awesome cardio because you are jumping, squatting, dodging and moving your arms the whole time. I also like the idea of not having a wii-mote as I remember the kids accidentally chucking them at the tv during wii bowling.
Yes, your 3 year old can use it, with some help in setting up the game. My 3 year old does interfere with the games a bit though just because she wants to get in on the action even if it isnt her turn, but I think that is to be expected. If you get too close to the screen or too far away the game will tell you to move back so the sensor can view you better, so we often have to tell the kids to move back.
I can ask my husband about the other questions because I am not sure about whether you need wireless etc.
--My husband said definitely get the larger memory. The one with smaller memory will not be enough to hold any downloads, it will only have enough space for your profile and avatars.