Moment of Awesome / Funny Moments / Nightmare Fuel: All three at once. Seriously. The climactic chase between the Headless Horseman and Ichabod is one long sequence of wall-to-wall terror, hilarity and stupefyingly great animation.
Cyril the horse gets one when he speaks for Mr. Toad in court:
Prosecutor: Then how did he get the motor car?
Cyril: The only way a gentlemen gets anything; the honest way.
Prosecutor: And what is the honest way?
Cyril: Ha ha! I thought you wouldn't know that one, guv'ner!
The Headless Horseman's dynamic entrance. Seated upon your haunted black steed atop a hill? Check! Carrying a sword in one hand and a blazing pumpkin head in the other? Check! Scare both the protagonist and the children watching this short with a diabolical laugh? Triple freaking check!
Toward the beginning of the Sleepy Hollow chase scene, there is an incredible moment where Ichabod's horse runs down through a ditch, but the Horseman simply leaps over it, with about a second of hang time, silhouetted against the moon, his cape billowing around him, with the music swelling.