Most can probably explain this better than me but here goes.
The piece that has the eccentric turned on it has a socket drilled in it to receive a single ball from a ball bearing. This socket is drilled to run off center, hence the eccentric, and there's also a socket on the part that holds the toolbit that the same ball sits in, the two are held together only by the downward pressure on the quill. When the machine spindle rotates, the upper end of the toolbit rotates off center because the ball that drives it rotates with the eccentric hole. This causes a rocking action if you will on the bottom of the toolbit, and the end of the bit is ground concave, leaving, in effect, four cutting edges, each alternating as the bit rocks. Relief is ground on the sides of the bit to allow for the rocking motion as it gets deeper in the hole. Hope that makes sense. He also posted a link to a video. Great job, by the way, been going to make one myself but haven't got around to it.