Hi, i m the lead of this research project which was really more of a first prototype and feasibility test. We have already started working on the next version though, but can't comment on it yet.

Even something as simple as head gestures, which can be done with just about every currently-known HMD, is hugely helpful in expressing emotion. Check out AltspaceVR, it's pretty incredible. I had an hour-long conversation with someone and even after the first 5 minutes it felt like we were just sitting in Halloween costumes, talking to each other.

I have tried Altspace many times :) We've built something similar in some regards. We are helping people learn foreign languages in immersive environments (including VR): http://learnimmersive.com