Honda has a similar hydraulic-CVT as the above post that they developed for scooters and small motorcycles, and they have a 2009 model with it in production. I can't speak for the one above since it gives no details, but Honda's system combines a hydraulic swash-plate pump and motor in a single housing that rotates together with output shaft speed, and the whole deal is arranged so that at highway speed, the hydraulic part of it is locked up (1:1 ratio). At lower speeds when accelerating, the hydraulics transmit more of the load, and there is some inefficiency, but this is a smaller part of most drive cycles.
Torvec's claims of fuel efficiency improvements seem based on big reductions in engine speed, particularly at low vehicle speeds. The improvements are smaller as speed gets higher. It's possible to do that with practically any CVT and it's possible to do this with a normal transmission by upshifting really early, but most don't do it because of driveability concerns. (The 4 speed auto-box that they're comparing to, isn't a design that's going to set the world on fire.) You can have the economy, but it might not be worth the unpleasantness. I can get about 10% better economy than "normal" with my TDI by upshifting to keep the engine barely above idle, but it requires a feather touch on the accelerator to avoid lugging, and actual acceleration or hill climbing is nonexistent without a downshift.