Vertical and horizontal parallax type scroller [renamed]

I know that this has almost certainly been asked before, I know because every quarter at least one of my students brings in this site.

My question is how I would go about making a parallax type scroller like this that works vertically and horizontally from the mouse position, and works with many more levels than this (like 20+ levels).

Can anyone point me in the direction of a script or tutorial to help me put together something my student can use for his final?

Thank you in advance.