The video done below could now be done easier with the free Droste Effect Pixel Bender filter that works in AE CS4. The "Droste Effect" features recursive images (like feedback) like the cover art of Ummagumma by Pink Floyd.
Adland has the story behind OneInThree's creation of a "Droste effect" video for the band "Brave Bulging Buoyant Clairvoyants" (shown below):
"Mathmap was designed to apply the effect to single images so OneInThree developed a proprietary method to be able to run batches of images through the program, unfortunately the batch limit was 40 frames before the application would crash... After 1080 computer hours, over 400 crashes and 2 terabytes of data, spread across 7 hard drives, the final compositing could be done. The 'Drosted' images were brought into After Effects, re-conformed and animated to zoom in time to the beat. The transitions were then hand animated and the stills added into the mix before OneInThree headed back to The Mill, for a DCP and sound lay."
Also, Frank Beltrán has posted the Making of Droste Videoclip "Clap your brains off," which was also done by hand.