They've been at this for a while. Back in the 50's Dr. Jose Delgado created a device called the StimoCiever (sp?) which could control the subjects actions by influencing their emotions through electrical impulses sent through electrodes implanted at key points in the subjects brain. Ghoulish, I know.
Though the tests were done on humans, Delgado's famous demonstration involved making a charging bull come to a screeching halt at the command of his device.
http://www.youtube.com/watch?v=be9YlbafKys
The interesting thing about this new project is that it isn't about controlling the subject, but training them to think in a way that can be read through EEG. Let's hope that's all it is.