This is the preformance Gorillaz did on stage using the same technology here as they're going to use in their 2007 World Tour. On a side note, Gorillaz won an award for best band.
For anyone who hasn't yet encountered this weird pop band that melds several styles of music: the "band" is virtual. Most of the "players" are not, in the strictest sense, real people. Unlike The Bots (@ Magnatune), which is meant as satire and play, Gorillaz takes a more serious approach. The edgy band has been winning awards, and as seen in the linked video, has even performed "live" at awards shows (using an old school projection technique, nonetheless).
I spend most of my days dreaming of weird dreamlike ways to meld synthetic and real worlds, and so virtual bands are just cool.