cool
Overall opinion:
looking good
Contstructive criticism:
animation could use some more speed, maybe try working at a higher frame rate? Try to smoothe out the re-using of graphics a little more, it jumped out when they where suddenly both up and standing just like before.
The difference in graphic quality in your movie is a little too big.
Maybe you could use some more effects, try fading in some white flashes? Oh and animated blood splashes would be cool =P
The concept of Toad being the hero and Mario and Luigi being a pair of.. well fags, is just plain funny to me... maybe some people dont get the humor because your graphics look pretty siriouse, but fuck them dont change that your drawing style kicks ass.
Keep it up,
Marcus