Oh, that's another wonderful story — of Clifford algebras: http://en.wikipedia.org/wiki/Dual_number , useful in automatic differentiation.
As to your general point of what constitutes "internal representation", someone below tries to convince people that definitions involved with Reals are arbitrary and can be made differently thus forming Hyperreals. But no. One first have to construct Reals anyways, then one arrives at infinity, which is not a number, hyperreal or otherwise, but a consequence of numbering per se. Nothing ad hoc here. Hyperreals are that or another notation, but the main thinking is still the same, just paradoxes pop in different places, the only gain is increase in confusion as hyperreals, tuns out, do not conform to that "internal representation" in many more places than the poor 0.(9) .