I saw it on a YouTube video (Monty Python and the Quest for the Holy Grail: the French Taunter) made with Blockland v0002. Many of the replies asked what lego game they used to make it since the video posters were so rude as to not post any reference that it was made with Blockland. After a long time (a few years) I remembered the video and decided to show my friend, and luckily someone finally posted the name of the game.
And one google search later, I found it! (at the time of V8)