Madame Tutli-Putli is a beautifully realized, maccabre film. The stop-motion animation on show here is brilliant. Most interesting are the eye movements. The effect was achieved by using eyeless puppets, and then using a human actor to film the corresponding eye movements. Once the tracking was complete, the footage was re-timed with the animation and then digitally composited into the onto the puppet scenes.
Other nominees for best animated short of 2007 are here: