I believe they're using the technique described in GPU Gems II. Pixar recently implemented this in prman for production-quality rendering, and it is very, very fast.
Not accurate at all tho
That second video is from a paper at last year's siggraph. It's not really GI, more a clever way of doing a dynamic, spherical-harmonics-based ibl solution. So it doesn't really allow for any brdf other than lambertian.