ID:183428
 
http://chris.pirillo.com/live/

If you look at his live webcam and use the chat what you type shows up ON the video.

Does anyone know how this can be done?

NOTE: if he's not streaming live, please check his recorded clips at the bottom to see the effect,

~Kujila
Didn't load the site fully (slow), but it looks like he's using Flash to stream the video. In which case it's a relatively simple matter of placing a text widget on top of the video widget within Flash, and updating it using Actionscript.
In response to Crispy (#1)
Or he could have used a screen capturing program such as Camtasia -- my friend has done it before. I don't know quite how he rigged it to work, but it was pretty cool stuff.
In response to Crispy (#1)
Yeah, but the service using to stream is "Ustream.tv" which, as far as I know, doesn't offer the service I see on his blog.

Thanks for actually replying though, I've been waiting a while for a reply :)

~Kujila