--- INSTALL --- Log in as root and type : make && make install
--- RUN --- Load the YAVLD module as root : modprobe v4l2loopback
now you can feed device created with data and fetch this data by any v4l2 capable program. try http://code.google.com/p/v4lsink/ as source of video data, it is only tested input program. v4l1 should also work with little to no additional efforts(effecttv still does not).
works with 2.6.28 kernel only