Titled "Wish You Waziristan", the film tells the story of two young Muslim brothers who travel to Pakistan to join an Al-Qaeda training center.
The £30,000-cost film shows that the two brothers went to Waziristan after being subjected to racist beating while playing football on a UK beach.
The cartoon, which combines computer game-style graphics and teenage street slang, opens with a failed attempt by the brothers to launch a grenade from a mountain-top in Waziristan.
The pair are shown watching videos of Al-Qaeda leader Osama bin laden.
As they returned to Britain, the two brothers were detained at a British airport.
The video ends with the older brother making a phone call from his jail cell to his mother apologizing for what he had done and writing to his brother asking for forgiveness.
"Having these animated movies will not help in anyway whatsoever," said Mohammed Shafiq, chief executive of the Ramadhan Foundation.
The British Security service estimates that 4,000 young British Muslims have travelled overseas to attend training camps since the 9/11 attacks.
Note the subtext: everything was fine until the racist English showed up. There is nothing, nnnnnnozzing! in the brother's backgrounds or culture or religion which would dispose them to violence, at least based on this blurb.