Pantograph

This is what is called a pantograph. It is a design of Matthius Wandell. You can see his website here.
So, what does a pantograph do? I'm glad you asked.
A pantograph such as this one works by allowing movement on three different axises. The end, the piece you see at the far right of the machine, is called the follower. With the follower, you follow a pattern or template. The router that is mounted in the middle of the machine follow the follower, left, right, up, down, or wherever you go with it. Because of the full range of motion, you can cut three dimensional cutouts from pretty much anything.

This is a good example to demonstrate what I'm trying my best to describe. I followed the crescent wrench you see in the photo with the follower. The router cut that three dimension item into a blank of wood at one half the size. As you can see, as long as you have or can make a template of anything twice the size you want it cut, you can cut anything you wish in wood.
I have some ideas for this in the future. It will be fun though experimenting with it though and testing the boundaries of just what I can do with it.