How does Content-Aware fill work?

Question

In the upcoming version of Photoshop there is a feature called Content-Aware fill.

This feature will fill a selection of an image based on the surrounding image - to the

Answer 1

As a guess (and that's all that it would be) I'd expect that it does some frequency analysis (some like a Fourier transform) of the image. By looking only at the image at the edge of the selection and ignoring the middle, it could then extrapolate back into the middle. If the designers choose the correct color plains and what not, they should be able to generate a texture that seamlessly blends into the image at the edges.

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edit: looking at the last example in the video; if you look at the top of the original image on either edge you see that the selection line runs right down a "gap" in the clouds and that right in the middle there is a "bump". These are the kind of artifacts I'd expect to see if my guess is correct. (OTOH, I'd also expect to see them is it was using some kind of sudo-mirroring across the selection boundary.)