I already posted this on my facebook account (of all things) but I just wanted to write a few words about it here. Make sure you watch the whole thing.
I got linked to it on /co/, where opinions on it seem mixed. I initially wrote it off as a pretty hipster-ish offering relying on weird, amateurish, stream-of-consciousness visuals (setting the Augenblick alarm bells ringing), and mildly "random" humour ("WHAT IF THE WORLD WAS MADE OF PUDDING?"), as well as a soundtrack that reminded me of the lo-fi warblings of everybody's favourite mentally ill indie singer, Daniel Johnston.
As I watched it a few more times , I started to realise I actually really liked it. The song is simple and is sung in such weird voices that you might think it was written as a joke, but the chords are really nice (for the musical among you - I particularly like the A flat minor with an added E) and the lyrics are sort of sweet if you can get around the aforementioned random humour. In addition, though, I think the animation is deceptively good - that stream-of-consciousness style where things just blend into each other has a lot of history behind it (go check out J. Stuart Blackton or something), but it's relatively easy to do. However I think this animation makes a lot of good choices in terms of comic timing and... I guess the right way to put it is "extraneous movement". There's no reason for his eyes to flap about at 2:27, it's just very funny. Also, notice the lip sync on both characters is pretty spot-on - another sign that a deceptive amount of thought went into it.
It was supposedly animated by both the singer of the song and an animator called Kirsty Lepore, who seems to be a dedicated and skillful stop-motion animator and has a youtube page here.