Found this old thing lying around on my computer and thought it was pretty neat. I made this about two years ago I think. It's meant to look like some kind of water colour + felt pen illustration. I was considering making some kind of artsy adventure game with this type of graphics, but it never amounted to anything. Maybe I should try to see if I can get it to work on GLES and do something small for iPhone/Android.
I'd need to tweak the effect a bit and have some better suited models for the artstyle though. The effect is done by rendering the scene twice, once with colours and once with outlines and shading. The colour texture is blured and distorted a bit to make to colours float outside the outlines slightly. And the sketch shading is of course done by overlaying a texture with a bunch of lines on all the shaded parts, and offsetting it every few frames to make it look less static
(Btw, I reccommend watching it in fullscreen and HD, the effect is pretty hard to make out in the small embedded window)