I'm guessing he had emacs open in a "Cathode":http://www.secretgeometry.com/apps/cathode/ session. The extra warping at the end of the video can be achieved by fiddling with the "distress" parameters in Cathode's preferences.
The apple2 screensaver that comes with xscreensaver can be used as a terminal emulator. You can also get a chintzy version by fullscreening xterm or gnome-terminal with the vt220 TrueType font and green-on-black, but that doesn't give you CRT distortions, or for that matter even correct-looking reverse video.
The glow fits very well with the flymake (i guess) flashing.
In theory a ~compiz composite plugin for this purpose wouldnt be hard to create, if it doesn't already exists.
And Qt seems capable of glowing to.. time to patch Konsole.