Mortal Kombat Online has posted a video from E3 of one of the XBLA kiosks running UMK3. It doesn't shed much light on any of the features other than a couple of rounds of game play, but it's good to see that it's coming along.

Still no word on a release date.

Check out the video here (free registration required)

There's also screenshots here

Many thanks to qwerty for the heads up!