This is what happens when you take the composite output of your video card, slice it, invert it, then feed it back to your capture card which is being displayed on your monitor.
The slice is the same effect used in my previous video, except when it goes below the threshold the output goes white (1V). This makes a negative image, which fed back on itself makes some very weird effects.
This works better in mplayer (I used xawtv) because I can resize the video window exactly and get a longer effect.