the guy states in the comment, it is done with active and passive IR sensing, all done with opamps all analog, no pic chips/etc, also mentioned it does not carry on flashing leds after an object has stopped moving, so placing a cup with start a ripple effect then stop, then react again when the cup is moved. could find anything about how each unit is joined together, but would of thought it would be easy enough when a grid is active to send a signal to its 4 sides to trigger there ripple and so on to other surrounds grid, you would probably want the ripple to get weeker as it moved out to other grids, so a serial count down could be used active grid sends out a serial data '4' surrounding grids pick this up minus 1 and send out to the other grid serial data 3 etc to effect the dimess of the leds.
rambled abit, but seems like a good project, might give it a go myself but use picaxe chips to run each grid.