I have a cap from a Euro TV broadcast and he's just a 2D image that's really distorted.
Check it, those of you with Quicktime:
http://www.davidlynch.de/cannes/vision.mov
If it won't play by clicking, try saving it first.... that worked for me. And PS... this is probably a German dub, so that would explain why Maddy sounds so weird and her inhales don't match her heaving chest. :)
Anyway, I never saw this the first few times I watched the series, so it seems weird to me. I guess if I was used to it, the opposite would be true. Still though, it's a pretty crappy effect, IMO.
Those who have never seen it without the effect, you can check the US version on YouTube (it's at the very end of this clip, so let it load. Sorry!)
http://youtube.com/watch?v=b3zGNw17Cm8