Lol, well you have to keep in mind it is an action AMV and like alot of AMV's here, there's a slight assumption that you've watched the whole movie before watching the AMV.
I remember my friend showing off some Naruto AMV's before I even heard of the anime, and I was completely lost; I was assuming that his AMV's were just a bunch of random images of ninja's smacking each other with giant Sand Pots and some wierd guy with one eye playing Patty Cake with his hands. I thought it was the silliest and oddest thing I had ever seen until I actually watched the anime.
Chances are, if you liked the anime and understood it, then you would like the AMV. But if you were fed up with the anime and tossed it after just watching the first 45 min., then you might not understand or like the AMV either.
Anyways, I'm glad you liked it and Im additionally glad that it made you want to watch the rest of the anime. Just like a good trailer should, it also made all my other friends want to watch the anime as well.
P.S. In Answer to your question, Yes, that was a Giant Metal Pot he built to help him fly. But later he upgrades to an actual jet pack. I suppose travel by Giant Metal Pot is all the rage in the Steam Punk Universe. LOL. Still, there have been wierder things that have appeared in anime.