Assuming its real, he found a way to exploit the Vertex/Pixel Shaders.
He is using the unsigned Kiosk-Demo-Disc to run modiefied content with King-Kong.
To do that you would need to burn every modification to disc and try untill you find a exploit,
the only possible way to do so is to emulate the DVD-Drive, then you only need to modify the
shaders right on your PC-HDD and let the 360 boot form your virtual disc.
That would also explain the upside-down position of his 360, its a HINT: there is no media present in his drive.
Oh, and the logos mean nothing, hes only working on a bootloader, wich then opens up possible ports to the 360.