Its worth watching this in 480p and full screen! The Google LatLong blog has some details about how the multi-panel rig was conceived and built for demonstration purposes:
We wanted to try visualizing other cool geo displays, so in July, Dan Barcay, one of the engineers on the Google Earth team, modified a Google Earth client so that it would synchronize views across multiple computers. The effect was pretty stunning: all of a sudden, flying around in Google Earth really felt like flying, and exploring the ocean trenches was like piloting a submarine. When you splashed through the sea surface you cringed slightly, expecting to get wet. You could even command your own lander down to the Moon or Mars. It was amazing to all of us how much more impressive Google Earth felt when we were surrounded by screens and able to turn our heads to look around (and even walk around). It felt more like a ride than a computer program, something between an observation-deck and a glass-walled spaceship. As a result of this totally seamless, immersive experience, we decided to name it the Liquid Galaxy. With the Liquid Galaxy, we could fly through the Grand Canyon, leap into low-Earth orbit, and come back down to perch on the Great Pyramid of Giza without even breaking a sweat.
It doesn’t take a lot to imagine a far more immersive experience with more detailed imagery and a seamless screen setup.