[Tuna-Fish]

One friend of mine had very good results when compressing a similar animation (cardboard-cut-looking ppl walking on a handpainted background coupled with cheesy effets) with the xvid codec. In the end he managed to compress it to less than a tenth of the orginal while retaining almost full quality. His background didn't move at all in the duration of the entire clip though, and that means a lot for a mpeg-4 codec.