The unique thing about this is that it uses HD video, and not one, but two monitors, plus a sheet of beam splitter glass to create a reflection that gets folded back in to the image.
It's a delicate art to operate the device, an interplay between the camera and monitors, the position of the monitors, and the monitor control dials (hue, saturation, brightness and contrast). Doing controlled feedback like this requires these control dials, but most HD TVs and monitors don't have analog knobs like old CRT TVs did, making it difficult to create controlled feedback in HD. [...]
All the images in this video are created by video feedback only - no computers are involved. The upper and lower monitors both display the same thing - the image from the camera, which is looking at the upper monitor. This creates a video feedback loop (much like a microphone next to a speaker creates an audio feedback loop).
This is glorious: