There's more than one Italian animated Titanic film, which are harder to separate than the two Turkish "E.T." films. One of these has a sequel, not worth reviewing.
Titanic: The Legend Goes On (2000)
How bad is it? Mindless, fairly entertaining and a little insulting.
Should you see it? I hear the uncut Italian version's better, but no.
This film starts with the sinking of the ship and then goes to flashback, where there are evil step-sisters (Cinderella), a Cruella DeVille clone (101 Dalmations), two bumbling thieves (Home Alone), a mouse traveling with its family (An American Tale), a rapping dog (original, but annoying), a lost mother and a locket that looks suspiciously like the one in Cameron's Titanic. When the iceberg hits, they try to bail with buckets. Everyone gets rescued and lives happily ever after. The animation itself looks jerky, like they used half the cels they should have and used them twice.
Legend of the Titanic (1999)
How bad is it? It's even worse than Titanic: The Legend Goes On
Should you see it? No.
An octopus, tricked by sharks, throws an iceberg at the ship. Then it becomes a sort of save-the-whales film. In the end, the giant octopus saves the ship by holding the two pieces together and everyone is saved. Beside the terrible plot and trivializing the real event, the animation is poor and the voice characterization particularly bad (even for a film dubbed into English).