I just finished my project which uses LPD6803 LED Modules to create a huge (80cm x 80cm) panel. I published a video on vimeo: http://vimeo.com/27453711.
I send uncompressed raw image frames from my application to my arduino or teensy board, the uP will then update the content. With one message I can update 32 pixels (= half of the panel).
The source files are published on GitHub: GitHub - neophob/PixelController: (LED) Matrix Control Software, supports various Hardware, Keywords: LED Matrix, OSC, Realtime, VJ, Arduino, Teensy, RPIIf you're interested getting such a panel, check out: http://www.indiegogo.com/pixelinvadersDIY?a=167555&i=addr