WAAAHAHAHAHAHAAHAHA!!!

It's Swedish. And Caramel Dansen (Karamelldansen actually) translated:
Karamell = Caramel candy
Dansen = The Dance

So it's simply The Caramel Dance

    

Note: the entire lyrics is Swedish. But it's hard to hear since it's so damn pitched.
- Here is the original version -

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I thought I had some time so I did a roughly translation of the lyrics as well, enjoy:

Vi undrar är ni redo att vara med - We wonder if you are ready to take part
Armarna upp nu ska ni få se - Put your hands up and let's see
Kom igen - Come on
Vem som helst kan vara med - Anyone can take part

Så rör på era fötter - Move your feets
Oa-a-a
Och vicka era höfter - Shake your hips
O-la-la-la
Gör som vi - Do as we do
Till denna melodi - To this melody

Dansa med oss -  Dance with us
Klappa era händer - Clap your hands
Gör som vi gör - Do as we do
Ta några steg åt vänster - Take a few steps to the left
Lyssna och lär - Listen and learn
Missa inte chansen - Don't miss the chance
Nu är vi här med - Now we are here with
Caramelldansen - The Caramel Dance
O-o-oa-oa...

Det blir en sensation överallt förstås - It will become a sensation everywhere of course
På fester kommer alla att släppa loss - At parties everybody will let loose
Kom igen - Come on
Nu tar vi stegen om igen - Let's take the steps again

Så rör på era fötter - So move your feets
Oa-a-a
Och vicka era höfter - And shake yor hips
O-la-la-la
Gör som vi - Do as we do
Till denna melodi - To this melody
....................................... and so on

This post has been edited by CreXONe, Mon, September 8th, 2008 at 01:09