Cut-out animation is one of the oldest and simplest techniques used in animation, involving stop motion with 2D characters and props cut from materials like paper and fabric. While it has limitations in movement control compared to full cel animation, it requires fewer drawings and lends itself well to dynamic action. Modern adaptations of cut-out animation utilize computers for efficiency, as seen in shows like 'South Park', which originally used physical cut-outs before transitioning to digital methods.