I don't know about anyone else, but my first thought after watching this was... Replicators!

Self assembling and repairing machines are pretty neat though. Anyone know what kind of software techniques they used (if any) to make the parts work together?

very neat, how about programming languages that not only find bugs but use a discovery tree to try solutions and test them, then report back to you the options (which include the option to do it manually) This already exist?

How would it tell the difference between desired and non-desired behavior?

pssttt... do you want to get us fired?? please shut up ;)

My favorite part was the end (when it commits suicide). Still, this was very cool to watch. I hope that this progresses very quickly. I want to see iRobot style servants in my lifetime.

T1000, version 0.1