Except for a few digitally-created effects like sparks and lightning, all elements (characters, backgrounds, weapons, etc) were hand-drawn, scanned, colored digitally in Photoshop CS4 and then animated in After FX CS4.
Although the elements were 2d, they were set up in a 3D space. This allowed the digital lights to behave more like actual lights (casting shadows, etc).
Takes place before the Infinite Santa 8000 movie.