The goal is a Star Trek-like melding of mind and machine, combining what's considered the most humanlike bionic arm to date - even the fingers bend like real ones - with tiny chips implanted in the brain. Those electrodes tap into electrical signals from brain cells that command movement. Bypassing a broken spinal cord, they relay those signals to the robotic third arm.
This research is years away from commercial use, but numerous teams are investigating different methods.
http://medicalxpress.com/news/2011-10-paralyzed-mind-powered-robot-arm.html
I'm mildly amused that they use Star Trek as an example of the melding of 'mind to machine', seeing as how Star Trek is easily the most virulently transhumanphobic piece of speculative fiction I've ever seen.