The mysterious muted pluck

I noticed an interesting technique being used on a video the ohta san and his son playing together. http://youtube.com/watch?v=Bd82d5pbKJo
When Herb Jr. solos he mutes his plucking which produces a nice dull thud effect. how is he doing this? is it a palm mute of some sort? He does it for the first time at about 1:02 in the video.
http://youtube.com/watch?v=Bd82d5pbKJo

We actually have some threads about these from awhile back:
http://www.ukuleleunderground.com/forum/showthread.php?t=162&highlight=mute
http://www.ukuleleunderground.com/forum/showthread.php?t=2288&highlight=mute

In the video, i think Herb Jr. mutes the strings by resting the side of his hand on the saddle so that it dampens the sound a bit.

Ah, lesson learned search through th forum before posting a new thread.