The images themselves are just 1024x768 jpegs; the rounded rectangles are the SVGs. Vladimir uses Javascript 1.8 to handle the translation, rotation and scaling of the jpegs and SVGs, and AJAX to update the screen all in realtime. It's extremely inventive programming.
I think that with things like <a href="http://www.amaltas.org/svgapp/">this</a> being possible, this browser is a huge step towards actual browser applications. Pretty soon, I think we'll be seeing entire business systems being run simply from a web browser.