I just noticed this game pop up on both Flooby Nooby and Spungella and after watching the trailer I can see why!
Here's a few snapshots to get you interested:
The style is like Don Bluth's early work and the animation isn't far off either. Watch the trailer below and see what you think:
The Act is the most intriguing iPhone game I've seen in a very long time, and the fact they've chosen to go for a really traditional 2D style is really refreshing.