Shrek 2 (IMDB) (Netflix)
The continuation of the trilogy-in-progress (Shrek 3 is coming in 2006), where Shrek (Mike Myers), Princess Fiona (Cameron Diaz) and Donkey (Eddie Murphy) meet the parents (Fiona's, voiced by John Cleese and Jule Andrews). Antonio Banderas has been added as a would-be buccaneer-cum-assassin-cat and comic relief pitcher.

I didn't see the first one, so we'll skip the comparative bit, but Shrek 2 fits the classic animated film formula; create a story easy enough for kids to understand and add jokes with the following mixture—two parts low-brow kid comedy, one part adult reference humor ("hey, there's a Starbuck's"), which throws a bone to the parents and gives them the added satisfaction of getting one their kids don't.