Kotaku, a generally pretty reliable games news outlet, is the source of this latest rumour, claiming that they "know something big is in the works for the console's dashboard."
The report adds that: "we're now hearing from a number of sources that the Live dashboard is going to be getting a second interface option, one that will use the yet-to-be announced motion controller to navigate."
The report adds that the Xbox 360's new interface, "will recreate the increasingly cluttered dashboard "blade" system in a 3D environment that will be something more akin to the Minority Report than a filing cabinet."
Slide through floating menu
Users will use the Xbox 360 motion-control technology to 'slide' through a 'floating menu system.'
Sounds fantastic of course, as most pre-E3 rumours tend to. Let's hope we get some official confirmation and details from Microsoft at E3 later this month.