liverpoolfc.tv uses the same technique.
they have 2 sets of cookies - normal login and a security token. the security token is set to expire after 24 hrs and their server keeps the token for 24 hrs, too. if you try to login and the server finds a token for you already in its db, it rejects the login until you logout from the other pc first, or wait 24 hrs.
i reimplemented the system for myself, though i don't enforce one login per user - i just use it to allow users to log in transparently, without storing passwords in cookies.
i use a random md5 token for the security cookie and save this in my db table "securityhashes". whenever a user logs in, the script first removes old tokens, then looks for an existing token for the user. If the user's cookie matches the token, he is logged in without having to enter a password or username (in another cookie). instead - or as well as - autologin, you could turn the user away if the db has a valid token, but the user does not. just remember to delete the token from the db when the user logs out.