Added, 5/9/08: And there it is! Lurking with the worst tags possible in the nether regions of YouTube. Man, this is a work of sheer perfection.
I watched The Puppetoon Movie today, which is a collection of shorts from George Pal, most of which date from WWII and earlier. The earliest ones are absolute magic - stop-motion that hasn't been bettered since. Oddly, the bulk of those were shorts the Holland-based animator did as commercials for Philips radios, and all were unearthly, charming and strange.
Unfortunately, I can't find any of those online, so you'll have to instead settle for his most famous short - a little more polished and cutesy, definitely more for the kids. Animation is still top-rate, though.
I do recommend picking up the full film, though - with a library of supplemental shorts, it's a museum of lost treasures. And I curiously feel like buying a Philips radio, too...