And this is a little info from snopes.com about it.
This display was the work of Carson Williams of Mason, Ohio, who spent about three hours sequencing the 88 Light-O-Rama channels that control the 16,000 Christmas lights in his 2004 holiday lighting spectacular. The musical accompaniment is broadcast over a low-power radio station so that it is only audible to visitors tuned in to the correct frquency and doesn't disturb the neighbors.
The rough quality of the video has led some viewers to believe it was put together in stop-action form from still photographs, but that is an artifact of the high compression used in the clip circulated via e-mail. Mr. Williams has posted instructions for recreating his "Wizard in Winter" sequencing, and another of his choreographed Christmas light music shows can be viewed here.