It's called a Stroh Violin. They're poplular in Eastern Europe and the Balkans, apparently.T
he lady holding it, Annalisia Hornfeld is a local player in Portland that kicks around with 3/5ths of The Decemberists with a group called Black Prairie. Like the Decemberists, they're really good, and really depressing, so they look for an appropriate amount of weirdness in their instrumentation.
Someday we'll win this thing...www.aclosesecond.com