It is a stop motion animation directed by Nate Burr (Youtube user: Blunty3000). This Circle Circle Dot Dot is created using the Anasazi Stop Motion Animator (frame capture), Adobe Premiere (editing), photoshop (any effects not done in-camera) and Goldwave (audio recording/editing). Video after the break.

“Cameras used; Intel CS330 (the better looking stuff) and Intel CS110 (which has been modified for extreme macro focus)”