My wife showed me this last night and my first thought was, "God, I'd love to have the time to do stuff like this." But I don't believe this was a real-time display. I think the genius of it was choreographing what combination of lights were needed and then taking the required number of pictures. Then I think they used Flash or Final Cut or something and reused the images at the proper point.
For example, they only needed to take the picture of the single light i the middle of the house upstairs (at the point where it goes to the right and indicates movement) once.
As good as anything --almost -- that JibJab did. Must be great to have a job that allows that kind of creativity.,