There have been some amazing shorts done on the web using characters and plots from video games.  Some of these shorts like Red Vs. Blue, based on the game and characters from Halo, leverage the in game cameras and 3D technology to create truly remarkable scenes.  Others are done in Flash like Napoleon Toadamite (below) - a funny short using characters from Mario Brothers to act out scenes from Napolean Dynamite. 

Many of these shorts have DVD like menus.  Click PLAY to start the short or review the menu options.

Vote for Pedro!

This is also funny...music video using Mario Brothers characters.  Click PLAY.