I have a history with Sarah Lee Guthrie and Johnny Irion -- AKA Sarah Lee and Johnny -- I wrote some liner notes to Sarah Lee Guthrie & Family's Go Waggaloo album for Smithsonian Folkways. So: soft spot, heart.
In any case, they have a new album out, Wassaic Way , produced by Jeff Tweedy, and the video for the first single "Chairman Meow" is so goofy and all over the map (puppets! animation! garishly bright colors!) that your kids will probably dig it (and the groovy safe-for-kids melody). Not quite a LOLcat, but some sort of funny feline. (Via DidiPop.)
Sarah Lee and Johnny - "Chairman Meow" [YouTube]