I know what you're talking about, Crazy Cuts by Rich Ferguson.
Ferguson actually uploaded the video for people to learn it for free on YouTube, he's using it to promote his DVD.
http://www.youtube.com/watch?v=d_qrVJ55yrc
It's basically a Sybil, one that never stops, so yeah you can make it false if you put back the packets exactly where you cut them from.
Checkout his profile to learn more tricks from his DVD, one thing I don't like about Ferguson is he takes old tricks, claims he "woke up 1 morning and it came to mind!", so he claims he invented it and gives it a new name...alot of the tricks on the DVD will have names you havn't heared of, because he basically renames them

but it still seems like a good DVD so you could showoff on your poker nights non the less.