That sounds to me like a mixture of Ancient pronunciation and Modern: specifically, a Modern Greek speaker adopting certain features of Ancient pronunciation, but keeping most of it Modern. I agree, it does sound better than people reading Greek with a bad American accent! (or German, or French, or British, or whatever
) Although the drawback is that you lose contrasts between a lot of the vowels....
The music at the beginning is from the Seikilos epitaph: http://en.wikipedia.org/wiki/Seikilos_epitaph
There are links to recordings at the bottom of the page (I like the one at biblicalulpan.org, which uses restored 1st century CE pronunciation).