Not too bad
As a sprite animator myself, I can give you a few tips. For one thing: You should probubly edit the sprites just so that they're at least blinking or something like that while they're talking, so the viewer isn't just watching some sprite stand still while he talks. For that matter, voices are a very good idea. There's a voice actor's guild right here at Newgrounds that would be happy to help you with that department. Oh, and concerning the rope around Luigi: try not to use drawings when you're making sprite movies. Use either all sprites, or all drawing. Nothing in between. It looks too out-of-place.
Besides things like that, though, I thought it was a pretty good movie! Not bad in the least bit! The humor was very good, I can even admit that I laughed a few times. Like when Mario saw Tingle and he just keeps backing away in shock.
Another thing I liked was the choice of music. I found it to fit the situation very well. However, besides the lack of voices, I found another problem with your sound: sometimes, there's a lag. IE: When Kirby slashes his sword, or when Yoshi fires his gun. It kinda messes with the action of the situation.
You need another other tips, I'd be glad to help out.