so this video of the dancing Indian (I guess) kid (or midget) is everywhere now. it's awesome. my favorite part is the slow mo walk.
My coworker is from India speaks a similar language and told me what happens. Apparently the guy sitting on the couch is a famous actor, Rajni Kanth, and in the movie his mom doesn't know he smokes. The mom is the lady who comes over and talks to him, so he has to hide his cigarette. Then the mom leaves and he brings the cigarette out. The midget or little person or what have you (who's also famous apparently) sees the cig and wants it, and Rajni tells the midget he has to dance to get it. Then when he finishes dancing, Rajni says he still can't have it because he's too small, and the midget threatens to tell his mom he smokes. Thus the midget gets the cigarette.
The song is pretty rad also, I did some research and it's from a song by MC Miker G & DJ Sven called "Holiday Rap". They were a Dutch rap group and the song sampled Madonna's "Holiday". Here's the video, which is hilariously lame. The part from the movie is about 2/3 of the way through. The rapping sounds a lot like the Sugarhill Gang.
Here's some info about the song, and I love the guy's review of it. And here's the lyrics. Wow. Some guy on YouTube claims that Sven is Mark Madsen's dad, but I think that's BS. Wikipedia says Sven's name is really Sven van Veen. And finally, here's the album.