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Fun fact, at UC Berkeley, they show this video on repeat in the nearby on-campus cafe, neat to see the methodology behind the project, I'd always just assumed it was human-designed and just a really crappy cloth-folding project or something. The 15-50x speedup on the videos makes the project not really that impressive from a human point of view, but still neat for the subject of machine learning!
Also, as a fun little jab at , I happen to know a fellow that works under this professor! The lab has some other neat projects on surgical robots and object recognition using kinect data: http://www.cs.berkeley.edu/~pabbeel/