I can't tell the difference between this and HDR from the photos POV, not the technical aspect POV. Anyone mind telling me? 
http://www.magiclantern.fm/forum/index.php?topic=7139.0Read the pdf embedded towards the very end of the very first post by A1ex.
Dual_ISO is HDR on steroids - literally. While the results may appear similar since it is bonding of different EV's as is the case with HDR. But that is where the similarity ends.
Conceptually, both come from different planets. For a good HDR yeild, you would need more a few photos with the same output at different EV's (3 or 3+ is ideal). For Dual_ISO, all the action happens on the same picture but in alternating horizontal lines - each alternate bright horizontal line holds the highlights; and the underexposed ones hold the shadows (pulled up to a point where the overall picture is correctly exposed). To acheive this each line representing the highlights and shadows are drawn from two different ISO's (hence the name Dual_ISO).
The results are stunning. The camera easily handles RAW/ CR2 in Dual_ISO mode. The grain is superb and unlike the sensor noise you would get on a normal RAW frame process to pull up the shadows in post. The range you get is about DR (14-16bit) - basically a 3 EV stop improvement. This functionalilty works both on photo and video.
My take on this is simple. For normal situations shoot normal. For abnormal situations shoot Dual_ISO.
Plus, the grain is something to die for.
Just look out for the grain on this link:
http://www.flickr.com/photos/89977905@N05/9449868520/