It's been found!
The tune IS from "The Neverhood" but only the first batch of demo discs produced for it.
That's why my queries on youtube came up zilch, even when searching "The Neverhood Demo"
because later demos had different music.
This cut never made the official Original Sound Track List.
http://youtu.be/DVxx7fPhJHE
Written by a cool musician named Terry S. Taylor.
Check out this game, AND the full Soundtrack if you like creative, original projects. The
game is published from Dreamworks Interactive, and plays a lot like a 3rd person, 2
dimensional MYST concept, and here's the coolest part - It's 100% Claymation