a riddle for math/science undergrads

Not to blog twice in one day, but I couldn't pass this up:

Someone who apparently managed to get a masters in creative computeering from a university in India declared recently that he found a way to store 450GB of information on a sheet of paper by using a system of shapes and colors instead of numbers. The paper is printed with a special printer that is roughly the size of a laptop and does not cost a billion dollars.

http://computerworld.com/action/article.do?command=viewArticleBasic&;articleId=9005393

(The URL code is screwed up... remove the ; from the URL.)

Your question of the day is -- without reading the articles debunking this claim -- what is wrong with this picture (no pun intended)? I'd give a prize for this, but it's too easy to cheat, unfortunately.

(I say "undergrads" because anyone who has finished a math, engineering, or comp sci degree yet does not instantly see the fallacy here should check the batteries on their BS detector. It's not an easy question without knowledge of the basic underlying math, but it's dead simple with it.)

To his credit, the author of this claim is either insane, a complete idiot, or a comic genius. I can't figure out which...