In this work, we describe a novel system that automatically evaluates dance performances against a gold-standard performance and provides visual feedback to the performer in a 3D virtual environment. The system acquires the motion of a performer via Kinect-based human skeleton tracking, making the approach viable for a large range of users, including home enthusiasts. Unlike traditional gaming scenarios, when the motion of a user must by kept in synch with a prerecorded avatar that is displayed on screen, the technique described in this paper targets online interactive scenarios where dance choreographies can be set, altered, practiced and refined by users. In this work, we have addressed some areas of this application scenario. In particular, a set of appropriate signal processing and soft computing methodologies is proposed for temporally aligning dance movements from two different users and quantitatively evaluating one performance against another.