The demo that can be viewed above shows of a new Sony Ericsson Application called Creatouch.

Creatouch is an application that has been made to enable users to personalise their home-screen of their Sony Ericsson mobile.

The video which features Creatouch running on the Nokia X10 shows of all the major features of the application.  It enables you to draw shapes for you home-screen with your finger and import a picture which you can add text to which can then be used as the wallpaper for your home-screen

Creatouch is really good for 3rd party application producers as they can easily use the software for their own applications.