Original Alpha Kid, Michael Edwards pays a visit to the foundation  and recalls some of the behind the scenes tricks that he and Steve Shaw  (Banachek) did during the MacLab test.
Project Alpha was an  elaborate hoax orchestrated by the stage magician and skeptic James  Randi. It involved planting two fake psychics, Steve Shaw (now better  known as Banachek) and Michael Edwards, into a paranormal  research  project. During the initial stages of the investigation, the researchers  came to believe that the pair's psychic powers were real. However, more  formal experiments, as well as criticism from both the parapsychology  community and Mr. Randi himself, led them to dismiss their initial  trust.[1]  The hoax was later revealed publicly.
The success of  Project Alpha led Randi to use variations of the technique on several  other occasions.
Great info on the Project Alpha Wikipedia: http://en.wikipedia.org/wiki/Project_Alpha
Watch part 2: http://www.youtube.com/watch?v=eMj38lF2U5k