It looks a lot like Sculptris actually - which is also free, and was bought by pixologic in 2010 who subsequently incorporated it's dynamic properties into zbrush which became dynamesh. (err, at least that's basically how I understand it went).

It uses a heavily teselated mesh, like sculptris, that automatically updates as needed as you sculpt. 

So it's not likely that you could generate morphs with it for poser people, since it would completely destroy the mesh. 

However it could be used to sculpt objects, clothing, etc. You would need a way of retopologizing the model once you're done tho. 

 

~Shane