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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!
Toad's way of stealing back the deed from Winky and the weasels.
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!