#2 - Rube Goldberg would be proud...
This is a very fancy peice of animation. It just shows how much work you've put into it. It is exceptionally smooth and well done. The backing sound's good as well.
Shame there's no way you can get the user to interact with it. If you could pull THAT off (like zooming into certain parts of the machine, pausing it, something cute like that) then I'd say it was fanastic.