The way I would guess that they achieve this, is by using a VPN. I was testing this for a friend of mine. You create a VPN Dialup Networking connection to a specified host with a username and password, and then all traffic from your machine gets routed directly to them, and they in turn reroute the traffic out through the internet.
I can safely say that the VPN solution does work. Heck, I even did it from behind NAT using the Telkom supplied Marconi Ethernet Router POTS.
One of the other nice features of this, is that you can selectively turn the connection on or off by literally double clicking on the connection, and then disconnecting it as you would a regular dialup account.
What I would be concerned about, is their bandwidth prioritisation that they seem to be using. I'm not entirely sure of the mechanics of how VPN's actually work, but I guess its a regular TCP/IP connection out to a specific host that runs on a designated port. Now, wouldn't this be affected too?