When you find yourself trying to remember a show (or any works) that's on the tip of your tongue but just out of reach, come here - the collective brain of the TVTropes community can probably help. Post all the details you can remember (examples help). If you're looking for a trope, head over to Trope Finder. Have general questions about tropes? Visit Ask The Tropers!
Allegra's Window? Eureeka's Castle? Fraggle Rock? The Tweenies?
Maybe one of these? https://www.google.com/search?q=2000+puppet+show+kids&ie=utf-8&oe=utf-8
The bus intro makes me think of Playdays
. It was a BBC show so could have been shown on PBS.
I am almost certain that you are referring to The Hoobs (which, I believe, was by the Jim Henson company).
https://en.m.wikipedia.org/wiki/The_Hoobs
The date, style, inclusion of real children and song thing all fit The Hoobs. It also included a bus intro like previous comments mentioned (the Hoobmobile was their mobile home and it was a weird bus thing).
Edited by Automaton120Someone else was asking not long ago about something similar, but the answer they were searching for was The Hoobs - maybe if you find that post you can look at the other options posted there?
OH MY GOD; MY PARENTS ARE GARDENIIIIINNNNGGGGG!!!!!Not sure on mascot costumes, but it says it has both puppets with live-action children, and 2d animation. Could this
be it?

Since my old post has over 50 replies, I decided to make them two different posts hoping that it will be easier.
A 2001 short-lived kid's TV show somewhat similar to Sesame Street (I think it was on either PBS, Nickelodeon) with hand puppets and mascot costumes and 2D animation. One episode includes kids (in pajamas, I think) dance-sitting holding a toy (possibly teddy bears) in a classroom, while two life-size puppets in front of a blue tarp or sheet. NOTE: the whole song is played the first time; the second time is the same thing, but the video quickly fades to black and the credits roll while the song is still playing. Does anyone know what the show is? And if so, what episode was I referring to?
Like the first show, this has also been bugging me for the majority of my life, Unlike the first show, however, I have not found any information about it.
Edited by bradleyangle@129