http://cb.nowan.net/blog/2008/12/02/redirected-walking-playi...
I think you were searching for that. It seems it also comes from the Max Plank institute.
That's the one. YourGoogleFu >> myGoogleFu.
Funny, I think Star Trek TNG described how the holodeck works by saying that it tricks the user not to walk into the walls. The visual feedback of slowly rotating hallway would definitely overdrive the inner ear. Too much, though, and you're going to get sick from it.
Someone published a similar hack for full-room VR, showing you can 'bend' someone's trajectory, to create the false sense that they're walking straight when in fact they're curving. In a large enough space you could simulate an infinite hallway (by having the user walk in a circle).
Sorry, I tried but can't dig up the link right now... but it's out there somewhere.