I'm building a p2p trustless Bitcoin privacy solution that operates like this - many thanks for the description, killerstorm!
Current status is testnet only, as there are various privacy-breaking attacks that I haven't countered yet. But it seems to work, and I was really happy to find this algorithm as implementing secure multi-party sorting didn't look easy.
Here's the thread, with source etc:
https://bitcointalk.org/index.php?topic=200952