So , what exactly does this shader do ? Gets the texture behind the model and places it on the model ? Atleast thats what I saw on the screenshot....

I dont know if this is the correct word im looking for, but water caustics? You know when your underwater and you see the light refractions from the water surface on the bottom of the pool and its all wavey and crazy. Yes, thats it. If you could animate the texture thats being projected you could make one helluvah sweet underwater enviorment.