Cut Out Animation

Cut out animation is a technique that uses flat characters, props and backgrounds that are made from materials like felt,paper, card and even photos. it is one of the earliest surviving techniques of animation, although in modern times cutout animation can be created using vector graphics or scanned images an example of this would be Matt stone and Trey parkers South Park. One of the first feature films to utilise cut out animation was the 1926 film "The Adventures of Prince Achmed" by the animator Lotte Reiniger, it is one of the oldest animated films to survive for nearly 100 years. The film uses a technique Reiniger had invented which involved manipulated cutouts made from cardboard and thin sheets of lead under a camera. The technique she used for the camera is similar to Wayang shadow puppets, though hers were animated frame by frame, not manipulated in live action.

Lotte Reiniger is considered the pioneer of silhouette animation and she made over 40 films in her career that all used her invented technique. Here is a short video that has lotte working and showing her unique animation style. 

Another huge name in cut out animation is the american animator and Python member Terry Gilliam who has also become famous for his huge contributions to the cut out animation community, when he moved to Europe he started work on the TV series  Do Not Adjust Your Set  which featured Eric Idle Terry Jones and Michael Palin his future partners in comedy, When the Flying circus took off he took control of all animated sequences including shorts like "The Miracle Of Flight"  

Here is a video that shows Gilliam showcasing his work and showing how he works, it has some very detailed information on his style of cut out animation.