Do I need a special software to do this

Cool Upside Down and Blurry thing

That's quite funny.

As for special software? No, you shouldn't. All it's doing is passing certain requests via a proxy, and dicking about with it in the process. In their case it's a *nix box running (presumably) Apache. There are countless graphics libs you can get for that which you could use to get the same flipped or blurred effect. It's only the images mind and that's what makes it easy. It's a far more difficult task to completely flip or blur everything on the page.

You wouldn't need to run it via *nix, btw. It would be easier though.