Terry Gilliam started out as the only American* member of Monty Python, and he was responsible for the absurd animated sequences seen throughout Monty Python's Flying Circus as well as their later films. Gilliam went on to direct some of my favorite movies (The Fisher King, anyone? Brazil? 12 Monkeys?). But way back in 1974, Gilliam appeared on Bob Godfrey's Do-It-Yourself Animation Show explaining how to make cut-out animations. If you're interested in Python history or actual animation, this is well worth a look -- he does a great job walking you through the specifics of his process. At the very least, check out Gilliam's rockin' haircut.
Read more about the Do-It-Yourself Animation Show from Cartoon Brew.
* = Gilliam later became a British citizen and eventually renounced his American citizenship in 2006.