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Looks like a live performance to us. The Wikipedia site for HH discusses how Keith Hopwood created this effect. In studio, it was probably played by Jimmy Page, but we think many of these bands get a bum rap, were competent musicians, but were forced to take the road to promote records while others started the next batch of songs in the studio.
http://www.youtube.com/watch?v=Sq1mrJYTJO4

Poor Peter Noone was one ugly kid! Looks like a living version of the Fred Astaire puppets from the Christmas special.

I saw no cords or amps -but I like that the guitarist added the dishrag 'mute' to his Ric.

Jeez, he looks 16 there!

was that mute stock? ha

With regard to a "live" performance (meaning they're playing their instruments) the absence of amps is not necessarily proof either way. We all know the Beatles played live on Ed Sullivan, yet there were no amps visible, so clearly there was the technology even then to either amplify off camera, or through the theater board. The use of guitar cords, we agree, is more dispositive. We're not sure if we see them here, but we might. To cloud this further, here's evidence they almost certainly could play their instruments, and rather well.
http://www.youtube.com/watch?v=gzX88hTXJuY

'No Milk Today' - very cool song!

Lots of sixties TV performances featured bands lip-synching to a pre-recorded live track (taped during rehearsal). Didn't the Beatles do that on their famous 'Ready Steady Go!' special?

Randy, you address an interesting historical point. We can all tell flat out lip synching - instruments and vocals. Easy to spot. American Bandstand, for all the great things it did, was exhibit A. Other performances on different shows were more subtle. This clip on "Mrs. Brown" is an example. Live? Taped? A combination of both?
We're not sure, but this is probably a performance from Ed Sullivan. HH were on there frequently. According to legend, Sullivan hated lip-synching and, early on, insisted that performers play live. (Eric Burdon has been quoted as saying that Sullivan really didn't like rock n rollers period, and thought they were inferior artists in general, and particularly hated it when they couldn't play live. Still, because he wanted teen age girls to watch his show, he eventually accommodated people like Gary Lewis and the Playboys,for example, who couldn't cut it, and others followed. By 1967, lip-synching was pretty common on the Sullivan show.)
Getting back to this tape, the vocals are clearly live. The question is, are they playing their instruments? We're not sure, but it kinda looks like it. You're right, though, it could be a pre-recorded track. It's definitely not the studio recording that we've all heard a thousand times.
One thing is certain - he's got a Ric, and it's the only guitar in the spotlight.

The famous clip of The Who on The Smothers Brothers show is a good example of the pre-recorded-during-rehearsal tracks mixed with live vocals.

Youtube: The Who on The Smothers Brothers Show

I get the impression that Roger Daltery was NOT diggin' this method of TV sound. It's almost funny how ****** he looks during this performance. You could see how he was just dreading it. On close listen, I'm thinking Entwhistle's bass solo could have been live as well - but on the other hand, perhaps it was recorded. He seems to be on another planet as he's executing some very tasty runs. (That's not to say that he COULDN'T have played that in his sleep... master that he was.) Pete's guitar is definitely live at the end when he smashes it through his amps.

The Hermits guy with a hanky stuffed under the strings? That Was Ed Sullivan for sure. I recall seeing that and going, What the hell???Even though I realized that was how he decided to mute the strings.

On the "My Generation" video, I wonder if the Pete & John's vocals were pre-recorded. Pete was never within an arm's length of his mic and still had very clear backup vocals.