Here's a lovely example of a locally produced music clip that's live action, but cleverly combines some Flash animation and motion graphics. It's a song by Kate Miller-Heidke called Caught in the Crowd. The animated bits are by Brisbane-based animator Steve Baker. I love this clip and I love this song, and not because I'm a friend of Steve's, but because (A) I'm a big softie and (B) I think that Kate Miller-Heidke is ridiculously talented.
Oh, and by the way... if you like it, vote for it in the IF Awards, where it's a contender for Best Music Video!