How can I warp/resize/translate the windows desktop output?

I saw this video (YouTube) and I want to make use of the ability shown at 3:00. Can anyone tell me what is being used here? Ideally suggestions would work on Windows 7 at least.

I've had a few google searches for "Active Windows Desktop", which was mentioned in the video, in an attempt to finding something that has this feature but I failed at finding anything开发者_JAVA百科

I'd recommend you look into WPF -- it has built-in features for arbitrary transformations of window content, so it would probably be a good place to start looking.