Intel Prototypes Low-Power Circuits
technologyreview.com
technologyreview.com
Thus, the error detection algorithm checks the actual parity with the "correct" parity. That of course falls down for multi bit errors.
Researching the literature a bit:
A different approach (tradeoff precision for power) in GPUs: Energy-precision tradeoffs in mobile Graphics Processing Units (http://iccd.et.tudelft.nl/2008/proceedings/060pool.pdf). Another one (probabilistic chips): http://www.technologyreview.com/energy/20246/.
Edit: Added more detail, formatting.
I wouldn't be surprised if Intel's work is similar.