Yet another version (0.93) of LIBXM7 was released and it now has the full XM effect range implemented. You might know LIBXM7 from other videos such as http://www.youtube.com/watch?v=9e8uyL4Qngo and http://www.youtube.com/watch?v=DOTtW3GKVTs so we can skip further introductions. If you don't, see the descriptions of the linked videos. :)
The song "Rhubarbarian" was written in MilkyTracker as usual, using the Waveworld sample pack available as (legal) torrent on The Mod Archive's tracker. TMA also hosts the original Rhubarbarian XM file. The demo also includes songs from my favorite Swede Strobe in collaboration with Ampli, my favorite Swede. Also present is my favorite Swede Ogge and then there's Kmuland.
The video is a blatant fake, the demo doesn't look like this. I mean how could it, on NDS? What you're seeing is 4 (No$gba) emulated Nintendo DS touch screens stitched together and the 3D spectrum spinning on the background was captured from XMPlay visualizing the song using CoR's Spec'n'Hopp originally written for Sonique. The sound is directly from No$gba though, and should sound pretty much identical to a real DS in all its non-interpolated, non-ramped goodness.
The Mod Archive torrents: http://tracker.modarchive.org/
Rhubarbarian in TMA: http://modarchive.org/module.php?165694
Spec'n'Hopp for XMPlay: http://support.xmplay.com/file_comment.php?id=187