I'm not convinced he's done the calibration, at least in his demo video. It's pretty bad, imo.
I think he's just running it on the raw unrectified images.
For anyone wanting to play with this, OpenCV has a number of tutorials on this using stuff like stereoBM (which also uses SAD if I'm remembering my algos).
The first step is calibration -- intrinsics (basically figuring out the equations that can cancel out the lens distortion) and extrinsics (how far apart are the two cameras in XYZ, tilt, etc).
can this be done manually by setting constants till the images look rectified? last time i played with opencv for this it didnt do a very good job at automatically calculating the k's. im hoping an algo comes out that lets me do disparity without calibration one day :)