seems to me some kind of bluebox effect:
put the dancer in a blue(or green) box
your video mixer produces an alpha channel.
place any color as background.
now, use the alpha channel, to generate a "full black" character. or, just low down the brightness of the signal to zero..
the "orginal colored ipod" is rotoscoping (=pic by pic hand cutted) or some kind of motion detecting after effect effect...-
doing this as "homebrewed"? FC(E) offers you some basic bluebox effect. but, tracking of the iPod...? enjoy