Looks like a combination of some variant on NGR (vivee has done research 
suggesting something like NGR could work), and Bloom filters. Both ideas are 
old, but they probably have some new variant on them. They claim a 30x 
increase in hits ratio and 6x transfer rate.

Bloom filters aren't that difficult, the problem is that we can't implement 
them prior to premix routing and still have any realistic anonymity against 
local attackers. Maybe the paper's "fuzzy" proposal helps.

Anyway, I haven't actually bought/read the article yet.

http://csdl2.computer.org/persagen/DLAbsToc.jsp?resourcePath=/dl/proceedings/&toc=comp/proceedings/ccgrid/2006/2585/02/2585toc.xml&DOI=10.1109/CCGRID.2006.136

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