My major problem with this film wasn't the story--it's quite possibly the closest to the original tale I've seen, and the most interesting. They did a great job with showing the difference between the words the characters spoke, and what was actually being thought or said by them--a very different thing in this story.
No, the major problem with this film was that there was no reason for it to be animated. The animation still isn't fluid enough to feel real, and it distracts you and pulls you out of the film. Moreover, they use the faces of the actors anyway, so why bother animating them? You might as well spend the money (and far less time) costuming them and letting them act out the scenes. Computer animation hasn't progressed far enough to work for this sort of thing, and the story (and effects) weren't fantasical enough to warrent the whole thing being animated.