That's an amazing mechanical machine. I believe that the history of these machines is related to the early watch mechanisms.
There are some other great videos on YouTube of "Automata" or self-operating machines. Keith Newstead makes some really exellent models. The video below is an automata model called the "Lighthouse Repairman".
http://www.youtube.com/watch?v=kh13HA7rmEs
Cheers,
Mark