Replacing with c... and still seeing what was there before

Hi,

I was just watching this: http://vimeo.com/6170479 and saw something, which I liked and want too :).
When he pressed "ctc" (to replace everything until the next c), vim was still showing him the word that was there before (with an $ at the end).
When I do that, the word just gets deleted and I can insert, but I can not see what was there before ...
How can I have it like him?

Thanks!
Nathan

So

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