This is rather interesting to see; I'll admit that before I read the website, I thought that perhaps the process of using it would be more complicated than worth the effort for all but a handful of professionals, though I see that it looks simpler than I'd thought.
[citation][nom]gilbertfh[/nom]It is amazing what kind of McGyver stuff film studios can pull off but I wonder how Nintendo feels about all this?[/citation]
Doesn't really matter what Nintendo thinks; if they know better, they'll milk this for publicity. If they don't, they'll either keep quiet about it, or make an empty claim.
Due to the First-Sale doctrine, as the DS is a physical product protected by patent law, a purchaser may dispose of the device in any means they see fit. Of course, it CAN void their warranty, but aside from that, Nintendo cannot actually tell anyone what they physically are and aren't allowed to do with their DS.
The only thing HDR Labs can't do here is actually SELL these items, since THAT would violate Nintendo's patent. However, they may freely give out instructions for modifying them. (much like, say, people giving out plans for converting hybrid cars to plug-in hybrids)