I having problems to see weight effect area in the viewport.

For example this file: 

    http://bit.ly/1KYzGwK

used in this tutorial (Sorry, I had to use the code block to get around posting more than 2 links) : 

    https://www.youtube.com/watch?v=rkT92aoMpP0

 Compare how its shown in the video (around 5:23) and this[![enter image description here][1]][1]

 In another test if I pose the object and try to weight paint on it:
[![enter image description here][2]][2]

So obviously the weights are being applied to the object, I just can't see it like its supposed to do.
Any ideas? 

  [1]: https://i.sstatic.net/9ZGQh.png
  [2]: https://i.sstatic.net/VETsq.png