I recently played the demo of the first game, and then the first two stages of the full version with my girlfriend, and I think it's a neat little game. I have my doubts about the control scheme, and whether there's much challenge to be had in later stages, but this is really worth trying for the graphics alone if nothing else (one of the best-looking 2D games I've seen -- easily Top 10 stuff). Might write a review if I end up playing it much more. In the meantime, here's a scan of the sequel:
http://www.jp.playstation.com/scej/title/locoroco2/
Release date is December 4, and there'll be a UMD version and a cheaper downloadable version as with the Yuusha no Kuse sequel. I like this trend.