[GTAHVIT]

I tried to google for a reliable source on line but my "Google Fu" wasn't up to it.

But, I remember watching a DiscoveryHD show where, I think, Steve Millen was deveolping a smilar setup for his Score/Baja truck. it was pretty cool they held the magnet into a bucket of this liquid and depending on the charge in the magnet the liquid would go from solid to liquid almost instantly...

I whish I could find it. It was really cool.

EDIT: I found this. It was Rod Millen.

So far, the automotive use of MR fluid is limited to shock absorbers and seat dampers for cars and trucks, but active motor mounts are on the way. Other ideas in development include off-road racer Rod Millen's work to develop a damping system to increase high-speed off-road capabilities of the Army's HMMWV. Dana Corp. is developing a center bearing mount for long driveshafts using an MR fluid damper, and also a viscous driveline coupling using an MR fluid clutch. Several companies that make production line equipment are using MR fluid rotary actuators in place of traditional air powered motors or electric stepper motors. Repeatability and accuracy are comparable, but braking is also possible, allowing movement and precise positioning of heavier loads.

YouTube Vid showing how this fluid works.