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Check this out.

http://www.videosift.com/video/Magnet-d ... tube-7-sec" onclick="window.open(this.href);return false;" rel="nofollow

We use this phenomena at work to damp some of our stepper motors. just put a magnet on the axel and a hunk of copper next to it. has a dramatic effect.

this is also what makes magnetometers a.k.a metal detectors work.