I know some of the recent sports games (especially hockey) have incorporated face scanning, but this video shows how much further the new R6 has advanced the art of character customization.
http://www.gametrailers.com/player.php?id=14051&type=mov&pl=game
I like how the huge variety of armour isn't just eye candy -- more armour will actually slow you down, and the opposite will protect you less but make you more mobile. Hooray for advances in realism!
Yup, its pretty damn awesome and you earn pieces and colours as you play through the game as well. However the face scanning is pretty damn hard. Took like 10 tries to get it to work for a critic and you have to have the stupid video camera thing that most gamers really have no real ambition to pick up (no real source then not knowing a single person who has it and a shelf full of them over at Futureshop).