Anything by Czech animator Jan Švankmajer is worth recommending.
Working in a variety of animations techniques, from stop motion to live action, with puppets, claymation, and just about anything else you can imagine in between, his films are grotesque, disturbing and haunting. Punch and Judy, for example, pictured left, go to war over a guineau pig and possibly the most violent scenes of puppet madness ensue. He's been the inspiration behind a lot of other animators as well, including Tim Burton and The Brothers Quay. I've been watching, in rationed installments, several of his short clips, allowing as it were time for them to digest. They settle into the unconcious where their images are added to the stock photography of dreams and nightmares.
A favorite film is his rendition of Faust - Slightly contemporized, but true to the spirit, a live actor Faust finds himself making an unholy bargain with puppet Mephistopholes, surreal plot developments ensue. Recommended further links and viewing as follows:
The Cabinet of Jan Švankmajer - a short homage by the Brothers Quay [Online Video via Daily Motion]
Various Shorts and Clips - via You Tube
Most of his films can be rented at Bird Dog Video.