This is the Verlaines. You can tell this video was made in Dunedin because everyone wears overcoats indoors. That's not cigarette smoke in the video; it's steam.
The enthusiast who posted this to You Tube summed it up thus: "bunny hops around while band play really cool song."
You can see Stephen Malkmus covering this song at Amplifier here but you have to register for Amplifer and use Windows Media Player. Despite this, it is worth it. Alternatively, you could watch Alt TV until they play it again or you could buy the Very Short Films DVD.