Wow, for the first time in my life I actually enjoyed reading it in the original japanese... for the first time, I can seriously doubt some of Inane's translations. Which means I'm getting better. Which makes me real happy.
Other than that, the Kyuubi must have had a physical body at some point - remember back in episode one, how the shinobi were attacking it with weapons and taijutsu?
So either the Kyubi had a physical body or the shinobi were a bunch of idiots back then.
/me goes off to celebrate via dowloading hentai...