Looks like it's an x-windows redirect (or maybe cygwin can do it too?). Anyways, x-windows can redirect it's output for a program away from the main display of the machine it's running on, and to another one.
It looks like that's what's going on here. The programs are running on the PC in the background; the pc is probably running some form of unix (linux, most likely), but I can't tell for sure (As I said, there may be a possibility that CygWin can do it).
Nifty, from a hacker point of view.. From a practical point of view, I guess I don't really see any. Feel free to correct me on that.