This is the third Wallace & Gromit short. As you'd expect, the quality of the character design is greatly improved from the first Wallace & Gromit short. Instead of the claymation, soft plastic figures that are poseable are used instead. Additionally, the sets are much more complex and detailed. Now this isn't to say that the stuff in the earlier films is bad--far from it. It's just that with each successive project, the artistry improves.
The only complaint I have about this delightful film, and it's a minor one, is that by this third short, the story has become a lot more fanciful and action-packed. In this film, less time is spent being laid-back and gentle (as well as very English) and Gromit even gets to fight against a cyborg dog! But, in spite of this, the film still works very well. Additionally, if you watch this film and the later full-length movie, WALLACE & GROMIT AND THE CURSE OF THE WERE-RABBIT, you'll see that there are some similarities in the stories. The dog is pretty similar as is his owner to the lady in the full-length film. Again, these really aren't complaints as much as observations.
Overall, a wonderful short film and one you can't help but love. It's wonderful and I can certainly understand why it, too, won an Oscar for Best Animated Short (like its predecessor).