It's interesting.
The transitions seemed to be too fast. Before you had a chance to understand what was going on it changed into something else. I dunno, this Flash was funny... like at Yoshi/Dragonforce and Toad/whoever that guy is.
I don't know if trying to sync with the music is a good idea, because there were a couple times in the movie it went off sync and looked awkward.
As for a sequel... ummmm, in the next one, that big mole from Super Mario World should sing Onyx's "Slam".