Crow T. Robot: Hey! Who sneezed on the credits?
Crow T. Robot: Shall I compare thee to a summers daaaaaaaa.
Carl Meecham: Relocation? To where?
The Monitor: To your Earth.
Exeter: A peaceful relocation.
Crow T. Robot: After the genocide, of course.
Chosen answer: They sit in front of a big screen -- or rather Joel or Mike sat. The puppeteers crouch down below the row of seats and hold up special black puppets to project the silhouettes. They did do takes for segments of the movies. I imagine it would be painful for the puppeteers to crouch for 90 minutes!
Carl Fink
The robot puppeteers laid down on the floor and the human host deeply reclined in front of a piece of plywood cut in the shape of the seatbacks. There were TV monitors playing the raw cut of the film in front of them with their lines on a teleprompter. The theater screen itself was simply a giant green screen which had the movie video added to it in post production. Search for "Last Dance RAW" for a few behind-the-scenes and some in-theater excerpts from the last TV broadcast episode.