Man, that was great.
I remember you, you started off fooling around with portal submissions making crap, and I thought you sucked, but man was I wrong. This was such a great flash. The idea of Mario teaming up with older Mario sprites is not new (as I am sure you are probably aware of this) but what you did with it was great, and made this cartoon unique. It was a bit strange, but I liked that. The graphics were among the best I have seen in flash cartoons. Part 2 should be great. Glad to see you're taking this thing seriously now, you are really good.
PS: The Mario at the end was VERY well drawn and animated, I agree with the last guy, there was an inconcistancy in your drawings, but I don't think you need work on it as you seem to have talent.