Since the technical details of Avatars on the XBox360 with XNA FX/Game Studio 3.1, there has been a fair bit of verbal turbulence regarding integration into existing projects/rendering engines. The main gripe people have with it is the forced, hard coded effect. This is basically a single directional rim light effect. You cannot render it directly with your own effect. This means you cannot create a really unique look easily, not can you render the avatar directly to a floating point texture as depth for shadow mapping or post-process effect like depth of field or SSAO.
However there is workaround. Take a look at this for example (Click for larger image):
This shows shadow mapping. No not some obscure projection trick, real shadow mapping. While I am not going to disclose the method for achieving this in this web log post (the image has some big hints), I may release the method as an article (probably on Ziggyware) in the near future. Bye for now.