When my sister was in university many years ago, she saved a dog from the pound, Bonnie, who was big and a bit aggressive. Bonnie had a bad habit of chasing cats and my sister was worried what might happen if Bonnie ever caught one. One day, Bonnie saw a rather large cat sitting on a porch and took off after it. This cat not only didn't run, it stood up ready to fight. Bonnie saw this and hit the brakes, ending up tumbling into a bush. She then walked back to my sister with her tail between her legs. If this cat could do it, I imagine O'Sensei could too.
I recommend checking out the Systema teacher, Mikhail Ryabko's DVD, Beyond the Physical. Mr. Ryabko explains the "psychic" work eloquently and gives a bunch of drills to do.
Alex Kostic shows/explains some of it in the clip a couple of minutes in. http://www.youtube.com/watch?v=0_jboskipAI