The video is created by Kaya Angel on the (well-known) sim "Angel Manor Estate" he created. The video showcases his sim and builds in an amazing way.
Having said all that - hell yes.. I am jealous that I can't produce graphics like that for my own machinima and keep the action smooth at the same time. Makes me wonder what kind of hardware Kaya runs :) Oh and if parts look familiar - yes I also used one of his builds for the pictures with the erotic story yesterday "Lust for Knowledge".
Another graphics-wise great looking (and/but nsfw) machinima right here: "Sorority vs AV club" from Travis Wagner.