> movie of gameplay
>
> How the hell is this done?
> My initial response is that it is fake in the sense that there is no emulation
> involved,...but how is it played then?
> Can someone enlighten me?
>

Glancing at the clip, it looks like he's playing the game using Chankast, the Dreamcast emulator - it can run Capcom fighting games like 3rd Strike, Marvel vs Capcom 2, Capcom vs SNK 2, and of course other Dreamcast games as well.

http://www.chanka.org/