Last week, Emotiv systems (where I'm at) went very public with what they've been working on at GDC 2007. Suffice to say, it got a little busy, what with the slashdotting and all.
It's been very weird, watching the widespread exposure and excitement from the inside out. Of course, I can't go into a heap of specifics, but suffice to say, the work is based on some solid science, and yes, it does work, and it works well (having tried it myself).
The project has had it's share of controversy, but, well, so far, it's coming out on top. Aspiring Jedi's are encouraged to contact Deborah, who'll enthusiastically examine your head while you get to try out the state-of-the-art headset :)