Possibly Light-O-Rama as discussed in the Wizard of Winter - trickery or live? 2 years ago.
BTW, check out the Planet Christmas site as it's for folks who do these kinds of extravagant displays.
Be sure to check out the Showing Off section of this site.
Some of these folks are out of control :-)
Probably running it through a DMX lighting control system. It's fairly easy to sync stuff up. If you want to do it with visuals, as oppposed to lighting, look up Arkaos. It's peachy :)