The video is Godly for sure. I still cannot see how it is video edited, even though you have stated it is. Maybe you hide the flaws in low resolution youtube videos, because it looks very very real.
Got a better webcam --- A higher resolution version is now posted, see my original post. Video editing these days is pretty simple with Photoshop for texture editing, DirectX for 3D rasterization, OpenCL and OpenCV for image analysis, and DirectShow for video encoding.