Update: This is now my first video to reach a million views. Thank you all so much. I really enjoy reading your comments. I feel I must reiterate though that the true genius in this video is with David Lewandowski, who made the original "going to the store video". Credit also to Jacques Perrey for the music "Little Ships", Nickelodeon for the creation of Nigel, Tim Curry for his smashing voice and of course the internet for the Nigel meme.
Normal Nigel normal walk.
I made it entirely with Adobe After Effects CS5. Took me about 3-4 hours, which is quite fast by my standards. Other programs like Sony Vegas probably would have been more suitable, however I have no experience with that.