Metamaterials, they actually discovered this about 2 years ago. I can't see what the difference between what they had then and this article. I thought US National Reserach Labs had bought all the rights to these and kept it confidential. It makes use of negative refractive indicies (affected by its electric and magnetic permuability of free space) to bend light around the object, making it invisible. I believe its surface plasmons (gold?) being used.
a
Seb - this is difference in that it bends like away from the object, more like water then light. A magnifind glass is a lens, where this is refraction.
And to CapCrunch, yes one of the issues is that the object being cloaked cannot look out either. I believe another issue is it does create a shadow.
(ps: sorry for the sucky spelling)
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