you my friend have made my day ;p I love ghibli's works, and the whole ghibli universe just fit so well with the narnia theme, you could mistake this for a real film if your not sharp enough to notice the masking ;p Unfortunately I did notice the masking, and its the only minor gripe i have about the video. Just as Niotex said though, I think some color modifications on some of the characters was also needed, most noticed this on sophie from howls moving castle, and the masks were noticeable around the edges. more so on some than others. Still, Considering Ghibli's detail in character movement and animation, its understandably hard to get this perfect and still keep your sanaty, so I'll let you off the hook ;p
Anyway excellent direction, custom scenes, scene selection, and editing all around.
My favorite trailer and one of my favorite amvs of the year so far
Edit: Just noticed your reply to niotex on the coloring, Guess I should say some of the color modifications are not perfect instead then ;p