There are several constant velocity transmission (CVT) designs in real cars, but due to design, they don't generally handle high power very well. Basically, it allows you to have an infinitely variable "transmission" without shift points. This site explains it quite well, and with pictures.
Not really Squee. A torque converter is usually a set of liquid coupled plates (with fins) that allows you to have your car stopped and still have the engine running. Kinda like the Nitro clutch bell idea.
Think of a CVT as a pinion/spur arrangement that could somehow vary their tooth count on the fly. Even that's not totally correct since each tooth ratio creates seperate known ratio. A CVT is infinitely variable because there are essentially two cones with a belt in between. One one side, the belt is on the low part of the cone, on the other the belt is on the high side of the cone. Once the engine hits its optimum rpm, the belt slides up one cone at the same time the belt slides down the other cone.
Actually, when I said torque converter, I meant like what a Polaris ATV has, which is common called a "torque converter" on them when I guess it is simply a CVT instead....