The song is The Ghost Inside off of their self-titled debut album. This is the second video released for this song, and this one is far cooler in terms of being really off-the-wall zany. The whole thing is basically the entire video of Private Eyes by Hall & Oates, with Mercer's mouth interposed over Daryl Hall's. So you're watching what was a terrible video from 1981 co-opted to make a cool video from 2010. Very reminiscent of Danger Mouse's video mash-up from The Grey Album. The result is a little creepy looking, but man is it unique. This probably breaks several copyright laws of some kind. Danger Mouse rules.
-Jon