I dont think u have that kinda of delay control on the pod 2.0. Hes using a boss dd6 (i think) to set the delay and using the hold function to record what hes just played so he can play iover it again. Paul gilbert is very very good, the delay effect just adds to it.
he looped his track in his delay, then just messed with the speed setting
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I'm not sure what pedal it is but I know it kind of like records what you play so you click it on and it does it. I think (not sure on this) you set the amount of bars you want it to record for and after they are done it just repeats it. After he bends down and does the speed up/slow down thing with it you hear him click it off to start playing the other stuff.

http://uk.youtube.com/watch?v=7_Z-POc1J-w Skip to about 5:30 on that vid and he uses a pre-recorded thing on it.
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