Jason,
I'm glad that Otter responded to your post, that is a far better explanation than I could have penned.
If you read through the links that Otter has attached you will get a better understanding of the system (you will probably need to read it a few times, it's very technical in places). If you then read a bit wider on some of the other Koi forums (just Google 'Anoxic filter') you will find that it is a very controversial solution, many people have very strong opposing views.
I'm looking at this from a rather more simplistic view. The filtration on my pond is a 'traditional' external particle filter and biological filter. In my opinion it is impossible to have too much filtration (i.e. the more the better). If I can add to the total filtration in my pond simply by selecting the correct type of 'soil' in my planting baskets then why not do it?
If the theory works then I have improved my total filtration.
If the theory doesn't work then I have lost nothing. Cat litter is 100% pure clay (don't buy anything with other additives). It is quite normal practice to plant Lilies in clay, indeed some bare rooted plants that you can purchase come complete with a bag full of pelleted clay in which to plant the lily. The only other ingredient used in the Anoxic filtration system is Laterite, which is a natural product used as a growing medium in fish tanks. Both products are (in my opinion) 100% safe and don't cost significantly more than purchasing bags of aquatic compost.
I don't have the technical background to determine for myself if this system works or not. The scientific explanations in support of the system are very detailed and quite compelling, yet there are many very strong oposing views. From my simplistic viewpoint however I have nothing to loose by using this medium in my planting baskets.
Regards
Iain