Demo's back in the PC days were from groups like Amnesia and Second Reality where coders would put together a nice graphic with music that lasted around 5 minutes or so.

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oh they still do it today http://www.pouet.net

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I like some of the new microscopic ones. Take a look at the demos by .theprodukkt, they have some amazing ones. .debris is particularly amazing, in that it is only 177 KB, yet looks absolutely incredible. They even have a first-person shooter, kkrieger, that is only 96 KB!!

I just got myself an Amiga 500, almost solely so I can go get all those old Amiga Demos. They were amazing. I remember being floored by the PC Demos.