Cool trick. The clubs are spaced evenly every 4th card in the black deck. She then splits that deck in half when she shuffles, and quarters again, by weight. This isn't so hard to do when you've got a feel for the weight of the deck. She's stacking each ordered quarter-deck on top of each other, eventually settling them in a stack that's going to order them consecutively once she performs the face down/face up sort. You can see as she's sorting them the only face-up black club is the 8 she's burying for the trick.
The face-down v. face-up sort isn't really a 'free pick.' You need to pick the face down pile each time so that it's less obvious that the clubs are being hidden. Once all the non-clubs are eliminated, you're left with the consecutively-ordered (near) suit of clubs.
On the blue eight of clubs, it's a nifty bit of hand control, but I believe the 8 is floating on the top of the deck through all the first two shuffles. You'll notice that top card never gets shuffled until the end where she splits the deck and (I think) marks that top card with the finger of her left hand. She then bumps it out from the deck and sets it aside as if it were a random choice, but it's really not.