I have had several people ask how my hexapod robot acheives terrain adaptation. The algorithm is based on a paper by:

Josep M. Porta and Enric Celaya - Walking in Unstructured Natural Environments.

It took me a while to find but check the link above for the PDF. :)

Just a quick post to mention the correct link to the page :
http://web.cecs.pdx.edu/~mperkows/ML_LAB/Giant_Hexapod/