I saw this on BBC News Click and was really impressed. It's an effect called "time-lapse tilt shift photography" where everything is made to look smaller than it actually is.
As an update Mar 2011, I just watched Gulliver's Travels (2010) and it looks like the same effect for the intro credits :c)
This is "a day in the life of New York City".
More Information can be found at http://aerofilm.blogspot.com/2010/02/sandpit-short-film-by-aero-director-sam.html
Personally I can sit there watching it without sound.
I saw this article and rather than bookmark it I thought I could just have it here for easy reference. It was written for Photoshop but I use Paint Shop Pro and felt I could do the same. It's just so complicated in Photoshop when web-developers need to be able to run several programs at the same time and simplicity is king.
In PaintShop Pro you would simply: