I realize the following video verges dangerously close on commercial territory, but considering the product in question--Flipnote Studio--is a free download on the DSi Shop, I guess we can let it slide. This animation was done in Flipnote by Aardman Animations, the folks responsible for Wallace & Gromit, so they probably know a thing or two about stop-motion animation. (Your results may vary.)
You can see some other, less impressive sample videos and find out about the Flipnote sharing system over on Nintendo's official site.
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