The song's lyrics are a satire of avant-garde cinema, and its perceived tendency toward meaninglessness and pomposity. The "narrator" of the song is an enthusiastic (possibly student) filmmaker who is attempting to make the titular movie. He extols its greatness and makes grandiose statements about his abundance of "face-imploding" ideas, but he hasn't even made it yet - and can't explain what it's supposed to be about.
The video itself is a cartoon experimental film and is ostensibly directed by Strong Sad and The Cheat. Their individual contributions are wildly different: Strong Sad's footage looks like it has been shot on black-and-white film, while The Cheat's portions are animated in his singularly basic style. Initially the video just cuts between the two, but they're superimposed and mixed together more and more until the two become indistinguishable. The video is full of references to other experimental films.
In spite of They Might Be Giants originally planning to make a separate video for the "MTV crowd," they have declared the Homestar Runner video to be the song's official music video. It was the first Homestar Runner cartoon to be shown on TV.
The song was used as the end credits music for the Independent Film Channel TV series Film School, as well as in ads for the show.