Essentially all that's happening here is (I'm going to use AE for this example, but the same effect can easily be achieved in a normal editing program) he's going 2 layers on the timeline with a slight overlap of maybe 6-7 frames. Each layer is the corresponding clip. So for the 1:58 example, one layer is Clip A (the close-up of the chick's face) and the other layer, Clip B (the chick's hands).
The layers are positioned (in space, not necessarily on the timeline) so that Clip A sits on top of Clip B. Then, you could parent Clip B to Clip A, then all you have to do is keyframe the position of Clip A to move up quickly, putting Clip B now in it's place. If you turn on motion blur, the effect should be that it appears to do a quick camera pan down. Sometimes you have to add in some additional blur using something like Directional Blur or make the transition faster to fit the illusion.
This effect could also be done with an actual AE camera, putting the 2 clips into 3D space, stacked on top of each other, but I try to avoid using a camera unless it's necessary.
Ask Brad an After Effects Question! - Forum - Site