A flawed gem
I thought this was mostly a technically well done piece of animation, it's just a shame that the humour just.... Doesn't quite work. Either the jokes weren't all that funny to begin with, or the timing was REALLY off. Most of the jokes just fizzled out because you either did the punchline a beat too early, or a beat too late. For example, when Captain Prego says his name on the rooftop, the ninjas laugh a little too late, not to mention there's a section in between which we THINK is the punchline, but then we're blindsided by something else that's meant to be the REAL punchline. It's a very tricky tightrope act, and unfortunately you kinda fell off and plunged 250 feet straight down with this one. And that "WAH WAH WAH WAAAAAAAAAH!" just makes me want to scream. O.o The only joke that seemed done right was how Captain Prego dispatches the head ninja: There was a good, simple lead up time, a brief pause of "What's he going to do next???", and then the punchline.
Then there's the dialogue itself. It just doesn't flow together very well. It sounds like somebody took care of one half of the translation, then another took care of the other half, and then the two halves of the script were added together later on without trying to smooth out the jagged edges. Then there's a third guy who comes in and randomly shuffles around and cuts up the recorded lines so that a reply to one sentence becomes a question in another, or what was once a sentence said in a single breath now -- becomes -- like -- this. This can disastrously affect the performance of the actors, who are now saying their lines in a completely different context, and now sound like babbling idiots.
It also doesn't help that the animation seems mistimed to the vocal performances. For example, when Captain Prego is driving in the car, he sounds angry and intense, but his face is all smiling and happy. Then when he says "Nobody calls me a dwarf!", he contorts his face into so many expressions that it goes from being funny to just plain confusing: "Is this supposed to be funny? Scary? Suspenseful? What?". Some of the physical actions taken by the characters are also really bizarre considering what they're saying out loud, and that creates a real disconnect between the voice and the character. There's a rhythm in the voice that you have to take into account when animating the characters, and if you don't do so it sounds like a badly dubbed Hong Kong movie.
Overall, I'd say most of the problem comes from the "localisation". Not just the translation of text, but just the general FEEL of the animation. At the moment it feels very awkward, like putting a joke through Babelfish and then trying to tell it straight off in that language. I encountered the same problem of awkwardness when I was working in the Final Fantasy: Mixed in Balamb 2 series, a problem which became ESPECIALLY noticeable in episode 3. Boy, was THAT a disaster.