Meh.

Sprites set to annoying music. Not so cool.
Sprites barely doing anything to annoying music. Not Cool.
Sprites barely doing anything to annoying music, ocasionally broken with bright, pointless flashes of light. Really Not cool.

Good stuff, this...

I really like most of the character desgins, including the floating onion-dude. The animation is extremely fluid and well-done. The only thing i feel i must point out is that that mage's staff DOES look odd... It's either too wide or not long enough.
My only serious complaint is the audio. While the theme in the intro is nice, but the song you've got playing during the action sounds like it was played by a Gameboy. Not an Advance, either. Was it done so that you could meet the size requirements?
Anyway, awesome movie, i'd love to see a sequel with an actual plot (And please don't let it involve an evil magical hemerroid (sp)).

Very reminiscent of old Ren and Stimpy.

I really like this movie, the animation style is very reminiscent of Ren and Stimpy with the character expressions.
I am somewhat annoyed, however, at the overabundance and exageration of some of the sounds (Things like the sound of him closing his mouth, falling and hitting certain objects. At times it's funny, at other times it feels a bit tacky and forced). Also, at some points the movie's soundtrack doesn't transition very well, the tracks stop and start too abruptly.
Exelent script and animation, it would be just about perfect if not for a few issues with the audio.

This is SO close to being a killer track...

I haven't got very long, so i'm going to tell you the one thing that i feel would help: This is very clearly an FL Studio song, anyone that worked with the program should be able to recognize that. The issue is that you've put very little effort into masking that fact (Most of your time seems to have been spent in the writing: Compositionally this is an exelent song, worthy of publication, and for that i am in awe of you.). The main issues are in the FL Keys module and the FLS-standard drum loops you're using. For the keys, you could either use a Parametric Equalizer to tweak the sound so that it sounds better, or try to find a new synth for it (KVR is a site with a HUGE collection of synths, look it up). For the drumloops, it would be best to just find new loops (they're all over the place if you look), since you didn't actually write new beats (Beats are hard to do...). If you're unable to do so, try putting a slow-moving flanger on the drums (The Ultra Fat Chorus works REALLY well for this).
With a little bit of polishing, you could go places... seriously.