Okay:
1) It's fake, as confirmed by gaming websites across the world. It's been highly commended for the amount of effort and intellect that went into it's creation.
2) The Revolution has now been unleashed.
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3) It still may be virtual reality: no controller has yet been demonstrated.
4) It will be backwards compatable with the GC, and will be able to connect to an online library of out-dated N64, NES and SNES games which will be available for download. (Prices yet to be confirmed)
5) It's my precious sexy baby and I want to love it to pieces. The final draft will be considerably smaller. If you're wondering how big it currently is, take 3 DVD's and stack them on top of each other, horizontally. That's how big it is.
Digs: The video seems to insinuate that the helmet features a camera which would calculate the size of the room and then manipulate the size of the gaming environment to suit your own restrictions. This is really where the reality of the dream machine begins to fall apart. :p