When you click the Google universal search box on the home screen it animates upwards on the screen until it has reached the top and from there the search area and keyboard is opened.
The animated widget is animated “on” the home screen because it slides under other widgets.
It is easy to see this behavior if one puts the search box at the bottom of the screen and place some other widgets higher up.
I can see this on my N1 and also in the emulator. Here’s a video of how it looks:
http://clip2net.com/page/m17613/6147916
Is this possible for me to do with my widgets or is this something that Google has made special for this particular box.
Unfortunately this functionality is not available for normal appWidgets. If you really want something that is animated on the phonetop then have a look at LiveWallpapers.
Have a look at http://d.android.com/resources/articles/live-wallpapers.html