According to iRobot, the "hamster controls the robot by running in the ball in whatever direction he/she likes -- ball is supported on three rollers and an optical sensor measures which way and how fast the ball is spinning." Video after the break.
The sensor data is fed to a microprocessor which drives the Create in the same way. Remember, this is exactly what the Create is designed to do: whatever you want.
[via BotJunkie]
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[Source: Tech Blog]