This one is a little more cohesive than the previous one I posted.
There's some neat use of projections that I think is very clever. The end result is the geometry is free to move, but the painter's control over what part of the whole image has which color, tone, value, etc remains. For an example of what I'm talking about, watch the top of the merry go round as it spins in that first shot. The geometry is passing through the painting as the top spins, but the painting is not stuck to the geometry. If you watch carefully you'll see this technique is the very foundation for this style of look through out the short- even on the characters. This is a great way of getting a consistent sense of the painting being alive without it feeling like it's just a painting plastered onto a puppet. The normal 'rule' in CG is to avoid having geometry swim through a texture, but for this kind of stuff it's a great trick.