I had this idea a long time ago, finally got around to implementing it this weekend. The concept is... well, it doesn't really matter, you'll figure it out. A kind of interactive fun-house mirror, I guess.
I'm starting to acquire a critical mass of code and techniques so that I can implement these things very quickly. I wrote the code in one weekend and still had time to mow the lawn and go grocery shopping.
Higher quality video here. For some reason, quicktime hung while trying to encode this, so the best I could do was a bloated cinepak avi.
P.S. If you liked this, you will probably like this, this and this.