I haven't watched the video yet, but from what I've seen of rod puppets in South Korea, this design is pretty popular in Asia. Basically, the stage is set up similar to doing muppets; a large flat (a wall) is put on stage. The performers work behind the wall, and they work the puppets from underneath. The puppets are on rods; one for the main body, and one each for the arms/hands. They can be well hidden using flowing costumes and camouflaging paints.

I'm sure complex cable-controls can be added to such puppets if you know what you're doing. (If anyone's seen Paul Mesner's 'The True Story of the Three Little Pigs by A. Wolf', this is pretty much the same thing)

I'll edit this post with more thoughts after watching the vid, if I have any.

Shawn and Jon those are good thoughts. I was thinking along the same lines. Something similar to a Jumping Jack. Only more precise.

I'm thinking something like this...only on a smaller scale.

Yes I think you are on the right track with that. The only thing is that string at the elbow would run up the arm and down through the body.  You would have two rings or triggers at the bottom to control each arm.  You might be able to do it with just one string per arm if you put a stop in the one the bends the elbow so that the elbow bends then hits a certain point and starts to pull down on the upper arm.

Fascinating show!!....the puppets are so well operated
that you cannot see the control rods hidden well in the
costume.

Thanks for sharing the link.

Bhanu

http://www.amlab.ru/rhymes/lib/1/book1_2.htm

Wow what an amazing link you gave us redwooder!....now I have to get out the translator to understand what is written...lol....thank you so much if you have any others please link us away....any books even in another language I am open to having you tell us I may get a copy. 

Daryl H