Sorry about that Just found you all. I have enormous trouble surfing this site which is one of the reasons Im not more active. A lot of the links don't work (I'M on IE5 for mac). Ive posted this problem on another thread for you to check out -
Thanks for the compliment on my avatar.
Wait for it ...hold your breath
Its done with ImageReady, a Displacement channel, and a moving Lighting Effects layer.
I guess that probably doesn't all make much sense but you can check this thread to see my exhaustive description of how I did the distortion as the stripes move over the shape.
http://photoshoptechniques.com/forum...=&threadid=668
I then just animated the lighting effects layer over the top with a reduced opacity I think.