Animation is a lot of work. Not only do you have to get all the modelling done and the background mattes done (or manga, or cartooning, or whatever floats your boat), you have to do everything you normally do for a video - camera angles, lighting, story boarding, editing. It's more labor intensive than renting a good 3 chip camera for a day and then working against that. On the other hand, you have infinite possibilities with the medium.

On you tube, a lot of people take Final Fantasy or Kingdom Hearts videos and set them to their own music. You might try that first. The 3D software recommended above is top notch and there's all kinds of price points if you're willing to sacrafice a little quality for the sake of your budget. You can also buy models or contract your modelling out to a pro, like www.ifreelance.com., which might be a good idea so you can focus on the *story*.

Good Luck!