It sounds absurd; impossible, even. However, Kuta has recently released a trailer to prove that he's got the know-how to make it work. The project is currently in the "storyboarding stage," with a planned crew of nearly 60 people. The film will be hand-drawn using a program called ToonBoom, and will be animated by an unnamed studio in Miami. Kuta plans on releasing the film in 2011, in time for Sonic's 20th anniversary, for free. Granted, he may come into a pretty major hiccup, as he admits, "We do not have SEGA's endorsement, permission, or authorization to do so, and it is a clear violation of copyright laws."
Should Sega avoid slamming a C&D on Kuta and co., then this film may become one part of the rebirth of the fastest thing alive. We're going to grab our Sonic PJs and dust off our DVDs of SatAM while we join the legions of Sonic nerds that are now anticipating this film in addition to Project Needlemouse.