It's all done in JavaScript. If you want the code, it's posted below.

<script language="JavaScript">

<!--
dCol='000000';//date colour.
fCol='000000';//face colour.
sCol='000000';//seconds colour.
mCol='000000';//minutes colour.
hCol='000000';//hours colour.
ClockHeight=40;
ClockWidth=40;
ClockFromMouseY=0;
ClockFromMouseX=100;

//Alter nothing below! Alignments will be lost!

d=new Array
("SUNDAY","MONDAY","TUESDAY","WEDNESDAY","THURSDAY","FRIDAY","SATURDAY");
m=new Array
("JANUARY","FEBRUARY","MARCH","APRIL","MAY","JUNE","JULY","AUGUST","SEPTEMBER",
"OCTOBER","NOVEMBER","DECEMBER");
date=new Date();
day=date.getDate();
year=date.getYear();
if (year < 2000) year=year+1900;
TodaysDate=" "+d[date.getDay()]+" "+day+" "+m[date.getMonth()]
+" "+year;
D=TodaysDate.split('');
H='...';
H=H.split('');
M='....';
M=M.split('');
S='.....';
S=S.split('');
Face='1 2 3 4 5 6 7 8 9 10 11 12';
font='Arial';
size=1;
speed=0.5;
ns=(document.layers);
ie=(document.all);
Face=Face.split(' ');
n=Face.length;
a=size*10;
ymouse=0;
xmouse=0;
scrll=0;
props="<font face="+font+" size="+size+" color="+fCol+"><B>"; props2="<font face="+font+" size="+size+" color="+dCol+"><B>";
Split=360/n;
Dsplit=360/D.length;
HandHeight=ClockHeight/4.5
HandWidth=ClockWidth/4.5
HandY=-7;
HandX=-2.5;
scrll=0;
step=0.06;
currStep=0;
y=new Array();x=new Array();Y=new Array();X=new Array();
for (i=0; i < n; i++){y[i]=0;x[i]=0;Y[i]=0;X[i]=0}
Dy=new Array();Dx=new Array();DY=new Array();DX=new Array();
for (i=0; i < D.length; i++){Dy[i]=0;Dx[i]=0;DY[i]=0;DX[i]=0}
if (ns){
for (i=0; i < D.length; i++)
document.write('<layer name="nsDate'+i+'" top=0 left=0 height='+a+'
width='+a+'><center>'+props2+D[i]
+'</font></center></layer>');
for (i=0; i < n; i++)
document.write('<layer name="nsFace'+i+'" top=0 left=0 height='+a+'
width='+a+'><center>'+props+Face[i]
+'</font></center></layer>');
for (i=0; i < S.length; i++)
document.write('<layer name=nsSeconds'+i+' top=0 left=0 width=15
height=15><font face=Arial size=3
color='+sCol+'><center><b>'+S[i]
+'>/b></center></font></layer>');
for (i=0; i < M.length; i++)
document.write('<layer name=nsMinutes'+i+' top=0 left=0 width=15
height=15><font face=Arial size=3
color='+mCol+'><center><b>'+M[i]
+'>/b></center></font></layer>');
for (i=0; i < H.length; i++)
document.write('<layer name=nsHours'+i+' top=0 left=0 width=15
height=15><font face=Arial size=3
color='+hCol+'><center><b>'+H[i]
+'</b></center></font></layer>');
}
if (ie){
document.write('<div id="Od"
style="position:absolute;top:0px;left:0px"><div
style="position:relative">');
for (i=0; i < D.length; i++)
document.write('<div id="ieDate"
style="position:absolute;top:0px;left:0;height:'+a+';width:'+a+';text-
align:center">'+props2+D[i]+'</B></font></div>');
document.write('</div></div>');
document.write('<div id="Of"
style="position:absolute;top:0px;left:0px"><div
style="position:relative">');
for (i=0; i < n; i++)
document.write('<div id="ieFace"
style="position:absolute;top:0px;left:0;height:'+a+';width:'+a+';text-
align:center">'+props+Face[i]+'</B></font></div>');
document.write('</div><div<');
document.write('<div id="Oh"
style="position:absolute;top:0px;left:0px"><div
style="position:relative">');
for (i=0; i < H.length; i++)
document.write('<div id="ieHours"
style="position:absolute;width:16px;height:16px;font-family:Arial;font-
size:16px;color:'+hCol+';text-align:center;font-weight:bold">'+H[i]
+'</div>');
document.write('</div></div>');
document.write('<div id="Om"
style="position:absolute;top:0px;left:0px"><div
style="position:relative">');
for (i=0; i < M.length; i++)
document.write('<div id="ieMinutes"
style="position:absolute;width:16px;height:16px;font-family:Arial;font-
size:16px;color:'+mCol+';text-align:center;font-weight:bold">'+M[i]
+'</div>');
document.write('</div></div>')
document.write('<div id="Os"
style="position:absolute;top:0px;left:0px"><div
style="position:relative">');
for (i=0; i < S.length; i++)
document.write('<div id="ieSeconds"
style="position:absolute;width:16px;height:16px;font-family:Arial;font-
size:16px;color:'+sCol+';text-align:center;font-weight:bold">'+S[i]
+'</div>');
document.write('</div></div>')
}
(ns)?window.captureEvents(Event.MOUSEMOVE):0;
function Mouse(evnt){
ymouse = (ns)?evnt.pageY+ClockFromMouseY-
(window.pageYOffset):event.y+ClockFromMouseY; xmouse = (ns)?evnt.pageX+ClockFromMouseX:event.x+ClockFromMouseX;
}
(ns)?window.onMouseMove=Mouse:document.onmousemove=Mouse;
function ClockAndAssign(){
time = new Date ();
secs = time.getSeconds();
sec = -1.57 + Math.PI * secs/30;
mins = time.getMinutes();
min = -1.57 + Math.PI * mins/30;
hr = time.getHours();
hrs = -1.575 + Math.PI * hr/6+Math.PI*parseInt(time.getMinutes())/360;
if (ie){
Od.style.top=window.document.body.scrollTop;
Of.style.top=window.document.body.scrollTop;
Oh.style.top=window.document.body.scrollTop;
Om.style.top=window.document.body.scrollTop;
Os.style.top=window.document.body.scrollTop;
}
for (i=0; i < n; i++){
var F=(ns)?document.layers['nsFace'+i]:ieFace[i].style;
F.top=y[i] + ClockHeight*Math.sin(-1.0471 + i*Split*Math.PI/180)+scrll;
F.left=x[i] + ClockWidth*Math.cos(-1.0471 + i*Split*Math.PI/180);
}
for (i=0; i < H.length; i++){
var HL=(ns)?document.layers['nsHours'+i]:ieHours[i].style;
HL.top=y[i]+HandY+(i*HandHeight)*Math.sin(hrs)+scrll;
HL.left=x[i]+HandX+(i*HandWidth)*Math.cos(hrs);
}
for (i=0; i < M.length; i++){
var ML=(ns)?document.layers['nsMinutes'+i]:ieMinutes[i].style;
ML.top=y[i]+HandY+(i*HandHeight)*Math.sin(min)+scrll;
ML.left=x[i]+HandX+(i*HandWidth)*Math.cos(min);
}
for (i=0; i < S.length; i++){
var SL=(ns)?document.layers['nsSeconds'+i]:ieSeconds[i].style;
SL.top=y[i]+HandY+(i*HandHeight)*Math.sin(sec)+scrll;
SL.left=x[i]+HandX+(i*HandWidth)*Math.cos(sec);
}
for (i=0; i < D.length; i++){
var DL=(ns)?document.layers['nsDate'+i]:ieDate[i].style;
DL.top=Dy[i] + ClockHeight*1.5*Math.sin(currStep+i*Dsplit*Math.PI/180)
+scrll;
DL.left=Dx[i] + ClockWidth*1.5*Math.cos(currStep+i*Dsplit*Math.PI/180);
}
currStep-=step;
}
function Delay(){
scrll=(ns)?window.pageYOffset:0;
Dy[0]=Math.round(DY[0]+=((ymouse)-DY[0])*speed);
Dx[0]=Math.round(DX[0]+=((xmouse)-DX[0])*speed);
for (i=1; i < D.length; i++){
Dy[i]=Math.round(DY[i]+=(Dy[i-1]-DY[i])*speed);
Dx[i]=Math.round(DX[i]+=(Dx[i-1]-DX[i])*speed);
}
y[0]=Math.round(Y[0]+=((ymouse)-Y[0])*speed);
x[0]=Math.round(X[0]+=((xmouse)-X[0])*speed);
for (i=1; i < n; i++){
y[i]=Math.round(Y[i]+=(y[i-1]-Y[i])*speed);
x[i]=Math.round(X[i]+=(x[i-1]-X[i])*speed);
}
ClockAndAssign();
setTimeout('Delay()',40);
}
if (ns||ie)window.onload=Delay;
// --></script>