Mr. Orange's "cops in the bathroom" story

Shortened Youtube video

I have always loved the "bag full of pot in a room full of cops" story that Tarantino has Mr. Orange (Tim Roth) tell in Reservoir Dogs. From the set up of Roth being told by his handler to make it up and rehearse it, to him actually telling it in the club and the visuals of it, the sequence is captivating and very believable.

The whole concept of coming up with such a tale and practicing it until it becomes second nature could be used as a primer for becoming a good liar or something less exciting like preparation for an oral exam. Even though the whole sequence takes but a few minutes, the way QT shot it gives the idea of Mr. Orange spent many a free hour perfecting it. Roth also does a great job of showing the importance of the rest of the guys believing it.

One of the coolest aspects of the way QT shot it is going from Mr. Orange in the club telling it to his vision of it occurring to him telling it from his vantage point in the bathroom with the awesome 360 shot as he tells it.

Edited to add:

The point of this meandering post is to ask a burning question:

I am no film expert so I don't know but have always wondered if the way this all was done was an original idea QT had or if he copied it from another writer/director. Some of you guys who have studied movie making and writing must have an answer on this. Can anyone help me with this question? Are their other films with similar telling of tales within the movie?

On a side note:

I found this more complete version of the scene ( Youtube) where someone changed the "in the bathroom" portions to black-and-white (al la American History X).

Just wanted to get the board's opinion on the black-and-white idea.