This is news to me… unless you meant this 2007 Los Angeles Animation Festival contest which provided professional footage of themselves singing for which contestants can take it, edit it and add animation, then submit it.
http://www.kachew.com/clients/rockinanimation/tallyhall.html (link dead)
Some details provided here, though: http://www.asifa-hollywood.org/labels/laaf.html
Unfortunately, it seems the winner’s videos were never posted… so only time will tell how the contest ended.
* UPDATE: There’s still never been any word on the winner or their final video, but the raw footage has been posted on HITS Galleries: http://www.hiddeninthesand.com/gallery/v/video/takenforaride_raw.html
*UPDATE 2: The entire video has surfaced! But the creator has decided to edit it back to an excerpt for some reason. So here’s where the link is: http://vimeo.com/49273234
*UPDATE 3: The video has been found and uploaded to YouTube