What is Urotsukidoji?
1.
It translates as "the wandering kid", even though the englist title is "legend of the overfiend". The kid in question is Amano Jaku - though I'd hardly call him a kid.
A film which will put you off tentacles for life.
I could swear the tentacle squid thing which attacks Hot Rod in Transformers The Movie is a urotsukidoji thing reworked and with slightly less obvious tentacles. Those pincer things inside Unicron look a bit suspicious too.
See
2.
Any
One story claims that urotsukidoji became popular because it was illegal in Japan to show an uncensored penis. However, the law said nothing about uncensored tentacles. I'm not sure if this is true or not.