I can't read this because it's in Japanese, but it looks like this device scratches a groove into an ordinary CD, allowing you to make a gramophone style record out of it. Is the sound horn a plastic cup? Link (Thanks, Michael!) jOSH (who can read Japanese) sez: "it's a working model kit that costs about $40. that cup is actually a 'paper' cup. in fact, it says that you use any paper cup and a regular sewing needle to complete the model. it also says that you can record onto CD-ROMs or 'the lids off of cups of ramen'!!! that sounds too good to be true, but that's what the site says. you can then play back whatever you record on it as well. it also gives tips on how to get better sound and one of the tips says to use 'aluminum bags' mounted to either a cardboard circle or CD-ROM (because the bags would be too thin) to get good sound (not quite sure what an 'aluminum bag' is...). it runs on two batteries, takes only an hour and a half to put together and they say that all you need to make it (that's not already included in the kit) is scotch tape, a phillips screwdriver and a scissors. of course you also have to provide your paper cup and sewing needle as well (they even give tips on the size of cup you should use depending on if you want to record voice, music, etc.)."
Also, check out Roy's translation of the device on his blog, and be sure not to miss his great photos taken in Asia, including the fried cicada kabobs.
And furthermore, Adam has a write-up about similar types of record projects, with pictures.