Munaf Rayani plays the tambourine.
http://eattapes.com/

FYI, i didn't film this. I just cut out this clip. The guy at http://eattapes.com deserves all the credit.

The songs name is The moon is down.
Also, since everyone keeps asking, the thing Munaf tapes to his guitar is an ebow. http://en.wikipedia.org/wiki/EBow