Whizzing is often done using a Dremel tool with a tiny buffing wheel attachment. Here are a couple more pics from Teletrade. Some telltale signs on these two is the flat luster, very few if any marks. The coin in the original post is a bit tougher because it has been retoned. Dipping and then retoning is another popular technique, probably more so than whizzing and retoning.
Oops, sorry, both new ANACS problem holders. NCS and now PCGS genuine will also have whizzed coins. The PCGS problem code key* is at: http://www.pcgs.com/articles/article_view.chtml?artid=5518&universeid=313 The first coin from above is: 1897 O EF45 details whizzed new orange holder http://www.teletrade.com/coins/lot.asp?auction=2692&lot=1678 The second: 1893 AU55 details whizzed new orange holder http://www.teletrade.com/coins/lot.asp?auction=2713&lot=2194 * I don't see a PCGS problem key code number for whizzed, I'm guessing that 94 for "altered surfaces" is used.
Doug, I meant that at first glance in hand it appears mint state. When you look at the coin from a distance of a few feet, it appears mint state. You have to look closely to see the whizzing. The photo I posted is very large and clearly shows the damage. I can't say definitively that the coin was whizzed since I didn't do it, but it looks like the product of a rotary tool to me.