This clip is comprised of clips produced using the built-in dvr in 3L at 320x240 pixels in the motion jpeg a codec. They are just slammed together back to back with a track from Ambient Amazon.
This clip shows a few methods:
Mapping a jpeg on to a cylinder and rotating it so that you can see through both surfaces, giving the unfocused foreground and in focus "warped" background effect.
The second method is moving the position of a jpeg on a sphere along one of its axis before it is mapped to the object, and rotating the sphere so that the point of origin makes it look as if the image is dissappearing down a funnel.
Also demonstrated is using a movie texture to supply the deformation map to a surface of an object to create rippling fx. In this example, the background (yellow/red color) is used BOTH as a composed background texture behind the fern leaves, which are mapped on to a sphere, AND as the moving map to determine the distortion values of the sphere/fern.
there are other additional simple motion rules used, as well as some fx on the final outputs to tweak the colors and provide additional depth and shadowing.
This example demonstrates using 3d space to achieve motion and perspective that appears to be 2d.