This is one of the watches as seen when Gary is rescuing the gang from Kim Jong Il's palace. It's a fully functional LCD video display built into a custom made watch case (and it's quite oversized, even for humans- note the gun handle from the Aeon Flux Shock Trooper Rifle at the bottom).

You connect power and a video signal to the two connectors on the arm. The long wire connects to a different controller for operating the LED lights mounted in the watch body. This item included all the power supplies, LED controller and extra watch bodies and wrist bands. It's a pretty cool item (and functional!).

Here's a 'dummy' watch that came with it and the LED control box.
The control box has seperate switches for the red, green and blue LEDs
as well as a brightness control for the blue LEDs (which can't even be seen
in the letterboxed version of the film, only in the pan-and-scan/fullframe).

 

Here's an attempt to photograph it operating (and playing Team America of course!)

Here's some screen caps from the movie showing one of these watches in use. Mine is attached to a female arm, so it would be Sarah's arm/watch. There was also a male arm that was made that would have been Joe's arm.
The only way the watch is seen close-up in the movie is being held by fingers as seen here.

You can click HERE to download a little Quicktime of this in operation.
NOTE: The dialogue in this clip is not safe for work or kids...