This is Ninjai: The Little Ninja. This is an absolutely beautiful flash animation and the best I have seen yet. A lot of time, effort and talent has gone into this. Absolutely breathtaking. And it's got blood, swords, dismemberment and some top quoteables.
Edit: I just got to chapter 8... It's really sad. I'm filling up
Edit: I just finished watching all the chapters so far. If this doesn't get turned into a feature film or a tv show at the least, someone ought to have a word. It's that damn good. And I am amazed that it's all done in Flash 5.0