Not kidding… check this out. I spent way too long staring at her/it. Its amazingly realistic, in fact Andrew thought it was a video chat when he saw it from across the room. I think its actually 3D rendered to some degree to achieve the head rotation. It scales really well even with the browser window at full screen, I can only notice a bit of deterioration in her hair textures.

My only problem with it is the goofy smile she has every once in a while, no human smiles like that.

[UPDATE] So it seems like a Japanese company is responsible for this, their website is http://www.motionportrait.com/ but I cant read any of it.