I once saw this clip on the channel 4 website, a year or two ago. It was accompanied with an explanation about the whole process. Very insightful and indeed a good way to show how most people are tricked in their beliefs.
I also want to add, for those whom don't believe his acts, he does admit he is tricking you (the viewer) before hand. He achieves his results using a combination of magic, suggestion, psychology, misdirection and showmanship