No, this isn't faked. It's really floating:
http://filesmelt.com/dl/Hovercase.png

I'm about 50% sure I could repeat the feat. I'm certainly not going to tell anyone else how to do it, since I don't want it getting abused like crazy.

Really? It's the GOOGLE SEARCH BAR this time?

It's very simple, the creator is clearly motivated to remove them, so all he needs is to be pointed to which hacks are being used. If there were a program setup to reward people for reporting hacks, (say, increase the ammo cap, or go the TF2 route and add hats, maybe just a fancy tag on your forum name or whatever, some reward) then one by one the hacks can be taken out, and hackers automatically IP banned. Once the websites distributing the hacks have been reported, then an update can be released blocking them along with the regular update. Ideally, the only hackers left will be people who made their own, because any website distributing a hack will find itself being outdated within a few days.

I figure this will be an excellent way to get rid of hacking programs, since it will motivate people to seek them out and report them, rather than the slow process of waiting for them to be discovered.