Just a suggestion - you guys might want to check out the
Animatrix - a collection of short animated stories set in the universe of the Matrix. I don't think they have a rating, but the violence and language are similar to the movie, so if you don't watch R-rated stuff, don't watch this. There is some fantastic animation in them though - the one called "Detective story" has a look that combines film noir with anime, and looks incredible.
Now back to the topic at hand -
My favorite animated film is Toy Story. The story is great, the music is great, the animation is beautiful, and that Buzz Lightyear cracks me up.