Most people dither by hand, and almost certainly thats what Derek did. Even if you use automated dithering, it'll always need some hands-on touchup to make it shine. With that said, here's a quick shortcut for dithering in photoshop.
I first defined an 8x256 canvas and applied a straight black-to-white gradient.

then indexed the image (via Image -> Mode -> Indexed Color) to 2 colors, black and white - and set it to pattern dither.

You then select portions from that image which you wish to use as gradient patterns (8x8 blocks), then define it as a pattern. PS will automatically optimize the pattern.

Once you're done defining all your patterns, you turn on "texture" in your brush settings, select the dither pattern which you wish to use, and set the mode to subtract.

Now you should be set to go! Just pick the pattern and paint. If you're picky about dither patterns, you can define your own by hand of course. This allows for painting broad areas of dither pretty dang fast.

Moving this thread to General Discussion BTW.