This program was developed for a 64k intro I'm currently in the process of plugging away on. 64k intros are a technical expression of art essentially. You have a limit of 65,536 bytes of data in which to pack your production into, including textures, models, sounds and code. Obviously you don't want to waste space storing bmp's (one 256x256x8bpp bmp would be 64k uncompressed!), so we need a different way of doing things.
This is where texture generation comes in, it has been used for a long time, but the first 64k to use it to amazing effect was TBL's stash. Then fr08 by farbrausch came out and redefined the standards for a 64k intro. It was as if you were watching a 5 or 10 meg demo, in fact it was better than most demos :). If you want to learn more about the demoscene then pay a visit to the following sites:
Scene.org - the hub for the demoscene, has just about all recent productions.
Pouet.net - excellent user determined rankings of productions.
Cfxweb.net - great coding resource for the demoscene.
Here is the GUI used to consruct the textures. Everything is very generic which makes it trivial to add a new effect.
Now here are some examples of textures that can be produced with the system. All of the textures shown here fit in less than 50 bytes.