Basically a split screen. I think sometimes it's more than 2 sections.
http://www.youtube.com/watch?v=uQYDvQ1HH-E
OK cool. I was thinking you were talking about the new woodstock movie that came out this Summer.
That effect is extremely easy to do in FCE.
1)Drag your first video clip onto the sequence track V1.
2) double click on track V1 so that it shows up in the Viewer, then click on the "Motion" tab in the viewer.
3) change the "scale" to something lower than 100 ( try 50 )
4) You should now see in the Canvas window the video has shrunk.
5) Click on the drop down box in the canvas window that looks like a Square with little bits cut out of it. Select "Image+Wireframe" ( and while you're at it, also select Show Overlays and Show Title Safe
6) Now you can drag your clip to wher eever you want it to be and resize it ( by clikcing on the corners , rotate ( by holding the Apple key while dragging a corner ) it etc
Once you're happy with that, add your next video clip and do the same thing, and line them up where you want them. And so on and so on...
You can do any number of clips this way ( I think it's up to 99 tracks in FCE )
If you want your clips to be different aspect ratios You can also distort, clip and do other things from the motion tab without having to use filters.
You can also set keyframes for each of these which opens up a ton of options for you ( but don't worry about that for now, it will juts be a headache. Trust me )
Good luck!