How to make a VM like this one?

Can someone please tell me how to make a VM like this  ?

[YOUTUBE]http://www.youtube.com/watch?v=WK4dmiyJDac[/YOUTUBE]

It has a picture and picture effect side by side with border around the videos . Did anyone on this forum create such videos ?

Which software should I use and what technique is being used in this video. 

Appreciate any help I can get in this regard.

Thanks

-R

Thanks