Alright, you guys are getting the full review suite from me, on account of I need something to do while the movie finishes. First off, let me say that I admire your effort here. It's obvious that a lot of work went into this, and I respect that. Despite that, however, this video has good number of issues that need to be addressed.
First and foremost: The introduction. The pace of the text, the content, the background, everything about it was slow. From the get-go, establishing the plot by just telling your audience what's happening does two things: it bores your viewers and it wastes later opportunities for exposition. If you gotta have the intro like that, I'd try spicing it up with some animation, but the best thing would be to start with a bang and get people interested in the plot, instead of opening it up like a Dicken's novel. Another thing about that: I know text-boxes are a staple of the sprite genre, but it'd be okay in my book to have used a voice actor over some still shots in the intro too. It would have picked the pace up a little and given us more stimuli.
Second thing: You need to work on your pacing. My advice: make the text speed interactive. For the fast readers the pace goes at a crawl, and for the slow readers who need more time it will go too fast. The pace of the text (and the use of the text in general) *destroys* any pace this movie might have had, and drags everything down the pace of a 90s JRPG without the playable elements. Even in scenes without dialogue, some of the shots felt awkward in their length and content. Don't get me wrong, there were some very good dynamic movements throughout, but by and large, they were too few and far between to pick up all the slack.
Thirdly: Your characters. To Chris I say "so what?" He's a big haired, would-be JRPG protagonist who is not as interesting as anything else going on. Even reading the intro was better than seeing him do almost nothing in this movie. A note on his design: The spite looks good, but it clashes with the other sprites and the background. Taken on its own it looks fine, but frankly the strongest point of this movie is the visuals outside of your main guys. The sprite work looks *great*, but your characters in it need some polishing. This is also true of the little profile pic in that appears in the dialogue box. Taken on its own, it doesn't look too bad, but compared with the polished look of Peach or Bowser, the quality sticks out like a sore thumb.
Overall, it is just hard to care much about what is going on here. The original characters are bland, the possibly interesting world they come from is only alluded to and never shown in any capacity, and the classic nintendo guys aren't doing anything really noteworthy either. Basically what I'm saying is your writing needs work.
On bright side, however, the animation is smooth, the spritework (excluding Mai and Chris) looks excellent everywhere, and the music you used is awesome. Sound effects are also well timed. Seriously. If you'd taken the dialogue and text-boxes out of this movie completely, it would have been a joy for me to watch. The Mario/Bowser fight was awesome, and exemplifies what I'm saying here.
So there you have it. If you can get a handle on your script and make the movie more dynamic, possibly even a little interactive, I think you'll have a force to be reckoned with. As it stands, I respect the amount of work you guys obviously put into this, but at the end of the day, it takes more than that to make something great. Better luck next time.