:doh:
It's sad that Peter Jackson said that because it's blatantly false. There is no set FPS that the human eye can or can not see.
It all depends on what you are displaying, lighting conditions, how young/old you are, how far away you are to the screen etc.
In movies for example frames are often blended into each other, and cameras create motion blur which makes the transition between frames less of a problem, in games that's is understandably impossible to do because you do not know what frame should be displayed afterwards.
I have no difficulty about seeing a difference between 60 and 120 fps when playing FPSs, and I doubt one would have a difficulty seeing the difference between 1000 and 120 fps as well.
The fact is that nobody knows whether or not there is a limit where our analog eyes cant receive data fast enough for our brains not to be disturbed by the fact that it's actually just a set of still images that are being handed to it.