Old footage, such as the Elvis funeral procession shots, were obtained from lost footage from a documentary being made at the time of Elvis's death.
Rod puppets were used to create several unique scenes in the film. Andrew Lankes used Barbie doll bodies, and removed the faces, replacing them with sculpted likenesses of the characters. Many sets were built from scratch, then filled out with found miniature furniture. Andrew filmed the sequences in his mother's living room.
When Mark sings to his wife on the couch "Please make my dreams come true... Right Now!" and then the phone rings, this was purely coincidental.