The moving light is Knight Rider Kit like device that has a bar of LEDs that produce the effect of the moving light along the bar. The moving light is microcontroller based, there may be an option to reconfigure the device to produce different effects other than the moving light.
*A: The original KITT have had 6 segments. But one segment was bigger than 5mm. I belive the size was about 10cm.
Wikipedia: The KITT http://en.wikipedia.org/wiki/KITT
Printed circuit http://projects.ultman.com/lib/exe/fetch.php?w=120&h=90&media=mlight:movinglight_rev1.0.pdf
Source code http://projects.ultman.com/lib/exe/fetch.php?w=120&h=90&media=mlight:ml_v1.3.pdf