This is a Harp Guitar.
http://en.wikipedia.org/wiki/Harp_guitar

You can find a absolutely stunning piece by Michael Hedges on the Harp Guitar here: http://www.videosift.com/video/Harp-Guitar-by-Michael-Hedges

Very nice. Sounds heavily influenced by Michael Hedges. Andy ranks up there with the best of them, although I still prefer his tunes with more melodic movement rather than the tapping drone notes. He has some beautiful melodies. Stephen Bennett still gets my vote for the "man" on harp guitar though. If you're not familiar, check him out.

Hey mlx,

I meant to reply in your profile a big "thanks" for the *save on Michael Hedges. That was nice of you to do that.

Big Thanks,

silvercord

In reply to your comment:
“*save”

From Wikipedia:

“There is nobody on God’s green earth that plays the guitar like Michael Hedges.” - Steve Vai

“Before Michael, acoustic guitar went from about right there to over here somewhere. After Michael, it goes from near the rest of us, where he found it, to out the other side of the world where he set it down for just a little while.” - David Crosby

“Michael Hedges is the guitarist from another planet.” - William Ackerman

"In Michael's hands, a guitar was a living, breathing extension of his deepest parts. It's almost as if he got so inside its body that the instrument was reborn. His passion for creating those exquisite melodies and technique was as focused as it was abandoned. There was simply no one like him." - Bonnie Raitt
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Sadly, Hedges was killed in a car accident in 1997. If you want to know who influenced Eric Mongraine (and countless others) here he is.

I had the pleasure of seeing him perform in the Napa Valley several years before his death and I must say this brought back many memories.