Hi jono!
I just had a listen to the section you mention.
The main melody is played using the E Hindu scale, the half-step bend in that melody giving it an aeolian flavour (they're both closely related scales).
At 1:59, he's employing the pitch-axis method and switches to E mixolydian (nearly identical to E Hindu, except that the 6th is sharpened in the mixolydian scale). The bass plays a B over this section (the 5th of E) to give it a different sound.
To get a similar sound in your own music, you can use the pitch-axis method. You can be playing something in A Lydian for example and revert to A Mixolydian. So the whole feel of the section you are playing changes, while you are essentially keeping the key note of the section the same.
I hope that answers your question!
Mark
www.markgibson.moonfruit.com