The audio for this clip is a multi-layered loop created with a Kazooka electric kazoo and a Boss Loop Station. This is an example of what you can do with modest equiptment and a bit of time to kill. Once the loop was done i sped it up a little using the tap function on the RC-2 which gives it an interesting modulated effect.
I captured the audio on a G4 iMac with Audacity free recording software, using a Behringer UCA202 USB sound card.
The audio chain was: Kazooka Electric Kazoo / Boss RC-2 / Bellari MP105 "round sound" preamp / Behringer UCA202 USB sound card / iMac G4 / Audacity free recording software.