Im pretty sure there is a lego made drill bit somewhere out there... Otherwise very cool!

At first I read "Lego 3d Killing Machine" so now I'm a tad disappointed. Either way, cool video.

lol me to nebonit! Also i saw that block of foam after it was done and i was like... what the EFF!

That's incredible as a proof of concept, but is it available for sale? Some young aspiring engineers would be over the moon if they had a LEGO CNC router.

Speaking of CNC, check out this industrial 5-axis CNC mill made by Daishin Seiki.
http://www.youtube.com/watch?v=RnIvhlKT7SY

Anything CNC is amazing stuff. There's endless manufacturing potential with those machines.

*edit, sort of*
I see. The Mindstorms NXT system is what the milling machine is based on. That is a very cool toy.