Ah, E3 – the annual video game expo where companies from around the world gather to announce their new games and showcase their holiday lineup.

In just under an hour (1:30EST/11:130PST), Microsoft, the creators of the Xbox 360, will kick off the week-long festivities with their press conference.

Here's a list of some of the more prominent rumors circulating around the Internet.

The Current Rumors
1. Microsoft’s Waggle Wand – Nintendo started the motion controller trend, and then Sony continued it by adding an accelerometer to their Dual Shock. Will Microsoft follow suit? Rumors point to ‘yes,’ so expect to see the new Banjo game to feature some sort of motion control. False.

2. New Halo Game – Bungie may have left Microsoft, but rumors suggest that they are still working on the Halo franchise. Apparently, the next installment in the series won’t feature series protagonist Master Chief, however. Instead, it will be a squad-based shooter in the same vein as Ubisoft’s GRAW. False.

3. Peter Jackson’s Halo – Years ago, Microsoft announced Peter Jackson was working on a Halo project. Will we finally get more details today? Count on it. False.

4. Casual Games – In an effort to court casual gamers, Microsoft has reportedly enlisted the help of iNis to develop a music game to reach that market. The name of this project? Lips. True.

5. Microsoft's Version of Mii's – The marketing survey that leaked weeks ago showed that MS was working on a new avatar system to replace their use of gamer pics. Is it true? I hope not, but I expect to be sorely disappointed. True.
 

Update: 2 for 5 -- not bad. Sony is in a world of hurt, though, as Final Fantasy 13 is coming to the 360 now.