Monk- In the game, Super Mario 3, Mario wears whats called a Tanooki suit.
I haven't played this game, and have to wonder why the L10N staff chose to misspell the word. My guess is they had no faith in the English speaking public's ability to pronounce a simple 6 letter word. By the time they got to Animal Crossing (the GameBoy version) they had the correct spelling. Or else they might've sent it out to a different L10N team.
A Tanuki is an animal in Japanese folklore. Also known as a Raccoon Dog, although the Raccoon Dog is a real animal. The Tanuki in folklore has huge testicles. dehawks avatar used to be a Tanuki shaking his hips, swinging his testicles back and forth.
The tanuki is a real animal. "Racoon dog" is from the imagination of a lazy translator who thought it better to invent a name for this animal which doesn't exist in the west, rather than leave it be. (This is similar to the practice that immigration officials used, too, forcing families to change from their real names when they came to the US.) According to Merriam Webster, the "raccoon dog" coinage only dates back to 1929.
The animal has some markings reminiscent of a raccoon -- particularly the dark rings around the eyes. Women with mascara are sometimes refered to as tanuki, particularly when they overdo it or are sloppy.
The animal in folklore is reputed to like drinking, and when several get together for an all night drinking party, they drum on their round bellies. At least one tale has the tanuki drumming too hard, and bursting its belly. They patched it with tape, and that's why many renditions of tanuki show an "x" of tape at the navel.
They're also supposed to have the ability to "bakeru" or change shape. Many of the tales involve a tanuki who's changed shape in order to trick some unwary traveler.
There's a common song about the male tanuki and his testicles, sung to the tune of "Shall We Gather By the River." It goes something like, "Ta-ta-tanuki's testicles are, swaying in the breeze, fura-fura." There are regional variations to the words, but that's the version from where I lived.