PBS has been advertising on Daddy Types lately, for which I am grateful. But Sesame Workshop's media office has not responded to several requests for production information about the classic "How Crayons Are Made" movie.
The Muppet Wiki information is cursory at best. The clip is mentioned as airing in 1988 on Episode 2484, and the music is credited to Stuart Horn. Horn is also credited with the lyrics to the Sesame Street stop-action animated series Teeny Little Super Guy. He also was well-known in the mail/correspondence art movement of the 1970's and 1980's. Sounds like the kind of guy who'd relish a Q&A about his work. Unfortunately, Horn, who also went by the name Stu, just passed away a couple of months ago.
Meanwhile, MaestroJosh87, who transcribed and performed the piece himself has added pop-up annotations to his YouTube video saying the music is "Water Course" composed by Richard Harvey.
According to commenters on Second Cafe, the opening and closing sections with the girl are by Harvey, which may mean the rollicking factory section is by Horn.
Harvey is thankfully still alive and composing scores for films and television series. I've emailed him about The 'Street; perhaps we'll have some closure on this important matter soon.
11/08 UPDATE: I heard back from Harvey's studio that they have recently found the original master tapes for "Water Music," which was "[o]riginally called 'Dragonfly dance'.....it will feature in full glorious re-mastered form on the re-union CD of his 70's band 'Gryphon' sometime next year [i.e., in 2009]" So stay tuned.
11/09 UPDATE And there it is!. Released last month under the KPM 1000 Series umbrella, Richard Harvey's Nifty Digits contains both tracks used for the Crayon Movie: "Dragonfly Dance" is the beginning and ending, and "Exchange" is the raucous, rolling piece in the middle. The tracks and the album are available on iTunes. Thanks to Martin in Harvey's studio for the updates.
Episode 2484, Season 19, Air Date: May 12, 1988 [muppet.wikia.com]
"Water Course" is on Harvey's "Nifty Digits," KPM 1251 [discogs.com]
Richard Harvey's website [richardharvey.net]
Stuart Horn's artwork, Northwest Mounted Valise [verizon.net/aahpat]