I have made an animation studio in our bathroom, luckily we have got another one for bathing. It makes a very handy studio. My set-up is of the basic variety, I have a good rostrum and lights kindly donated by Tim Olden. I use an old video camera and my ibook G4 laptop. I capture and edit using Premiere. It all works well for a project of this size, though I expect I will need to invest in a good grade. For a larger film, in budget and length, I would to capture the frames with a digital stills camera and upgrade my computer to run After Effects and Final Cut Pro.