I don’t usually link to app launches (mostly because I’m quite content with what I have), but this is as nutty as anything I’ve seen. According to their FAQ:

Hipstamatic and Instagram and other apps are applying filters to your photos in the software in your camera. InstaCRT is sending your photo to our office in Stockholm where the photo is displayed on a actual physical 1” CRT monitor which is photographed with a digital SLR from which the new photo is sent back to your phone over the internet.

Don’t believe me? Watch their demo video. There must be something in the water in Sweden.