I would really appreciate the community’s advice as I want to avoid a potentially expesive and disappointing mistake!

My assumption: I can use the KinectMocap Plugin and a Kinect for XboxOne  with a XboxKinect Adapter (I WON’T need an XboxOne as well) to record motions into iClone. I canthen import the motions in CTA 3 and EDIT THE MOTIONS in CTA 3.

Even though I need to export the motions from iClone intoCTA3 I will still have much, much faster animation.

I will still need to animate lips and I will have to dealwith some sprite switching.

Am I right in my assumptions? Is there anything I ammissing?

I really appreciate your help - thank you all!

Also, would I need 3DXchange in order to get the motions from iClone to CTA3?

No, you don't need 3DXchange.
What you need is iClone and Device Mocap plug-in, and then export animation to .rlMotion for CTA3.

Thanks edward. I really appreciate you taking the time. I also received the following advice from Reallusion customer service (after a day I thought I wouldn't get an answer to my post here!):

To use a Kinect For Xbox One with iClone will NOT require an Xbox One console. You will need a Kinect Windows Adapter to power the Kinect and the Kinect Mocap Device Plugin to link it to iClone 6 plus a free USB 3.0/3.1 port on your computer.
Once you have the required hardware and plugins you will be able to record motion capture which can then be exported to CTA3 Pipeline.
Note: The Kinect will only capture body motion only, it will not capture facial animation or fingers