This entry was published at least two years ago (originally posted on April 14, 2003). Since that time the information may have become outdated or my beliefs may have changed (in general, assume a more open and liberal current viewpoint). A fuller disclaimer is available.
Wired has a great article about the special effects of the Matrix and its upcoming sequels (and speaking of which, the full trailer for The Matrix: Reloaded has been released, and kicks much butt).
In the course of the article, Wired mentions that much of the inspiration and technology for the more eye-catching special effects in the Matrix films were drawn from a project called The Campanile Movie, which is fascinating in its own right. The basic concept is taking photographs of an area and then wrapping them around a 3-D rendered landscape in order to create a photorealistic virtual environment. They explain it much better than I do, though….
(via Jason Kottke)