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It's by Bar/ Blues/ Rock'n'roll band Brave Combo from Texas together with Japanese Ondo (& Pop) star Kawachiya Kikusuimaru. (河内家 菊水丸).
Ondo is an 800 year old Japanese folk music genre.
The track first appeared on the 1993 Brave Combo & Kikusuimaru CD Ondo Saves The World (Tele Disc TLCD-93001, released in Japan) and later in 1996 it was reissued on the Brave Combo CD Mood Swing Music (Rounder CD 11574, USA)
Check out http://www.brave.com/ for all about the Grammy winning Brave Combo! Their albums and other goods are available at their Webstore
Their youngest CD is Polka's Revenge (Dentone records, 2007).
2008: Anno Domenico is a tribute to Domenico Modugno's Eurovision classic Nel Blu Dipinto Di Blu (Volare) which conquered the world 50 years ago. Eurocovers will feature half a century of remarkable coverversions of the Italian evergreen.
With this link you'll get all the Eurocovers posts that have featured (or mentioned) the song so far.