The server is using node.js and it has two modes: it can either talk to a local QuickTime installation to stream the video or load a file into memory that contains all the text that makes up the frames of the video. For the production setup that runs on Joyent's no.de infrastructure the in-memory solution is used to avoid the dependency on QuickTime and to allow simulatenous access by multiple users.
The collaborative part comes into play with the scrub bar that scrubs the video for all users that are currently watching. This also means that the demo will not really be enjoyable with many concurrent watchers :)
I really love the simplicity of the client. It receives every frame as a single WebSocket messages and just puts that into a <pre> tag as soon as it is received. That's it.
2 Warnings:
- Most browsers recently disabled their WebSocket implementation, so it might not work for you.
Updates:
Chrome should work
To view on Firefox 4, go to about:config and set network.websocket.override-security-block to true.
For Opera: opera:config#UserPrefs|EnableWebSockets - Lets see how much node.js can take :)

