I saw Sita Sings the Blues last night in San Francisco. It was very much worth watching on the big screen, but you can also watch it for free online.
There is a way to read this film as appropriation, which would be fair. To me the self-consciously collaged (collé?) stylistics of the film read more as mashup. What counts as fair game for mashup (or alternatively, what's the difference between mashup and appropriation -- what formal features define the moral shift) is a good question, but the film is in any case brilliantly crafted.
Also, Bergson was right: rigidity is funny.