When I was a kid I used an erector set to make a car that moved directly into the wind using a similar technique. Many people don't think that is possible either, but with proper gearing, it works fine.
It's also possible to use a propeller sail to go directly upwind in water. You don't need gearing in water if you pick the right pitch on your underwater propeller relative to the pitch of your sail/fan.
http://www.sailwings.net/windspinner.html