I tried out valarking’s cel shade method, did a little test animation.
There are a few odd things in it, i admit, but i was just testing the cel method in animation, try not to mind the special fx if you can.
I used warp plugin with a radial blur using photoshop.
Its one of two characters i have in mind called “Thingy” the other guy im making is called “Majiggi”
http://communities.ninemsn.com.au/BlenderImages/Documents/thingy.avi
right-click and “Save Target As…”
-RISKBREAKER