This is a wonderful movie, the best thing Miyazaki has done since Totoro. The characters and settings are a bit strange, but they were meant to be that way. Its not so much a cultural thing, I read the Japanese find most of the characters strange too.
In any case, see this movie! I think its his second best work of all time (behind Totoro). Disney is slowly releasing it to more theaters, so it should be easier to find soon.