I found this video on a blog about a week ago. I've since been back hunting for that blog so I could give a credit. I can't find it anywhere in my bookmarked knitting blogs, so I'm guessing that it may have come from a link in a blog roll or something like that. So here goes:
Some of the comments say it's creepy, others comment on the obsessive nature of the knitter, others just comment on the actual animation. It's certainly different.