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I'm really surprised no one has answered this yet. This was a favorite of mine when I was a kid. They built a special set that was attached to a giant motor which turned the room while the camera was attached to the set itself. You can see while Fred leans into the turns of the room and makes the transitions. My kids just watched the clip just now on YouTube and are watching me type this now as they ask "how did they do that?" I almost hate to ruin the magic of it by providing this answer. Lionel Ritchie did it too. Look it up.

Here's a video that really clearly shows how they did it: http://www.youtube.com/watch?v=i0g3g6AvLtM

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14y ago

What else can I help you with?