
VRMH |

No, it's fine by the rules: a corpse is an object, and the resulting creature would be an animated object, which is a kind of construct. A Small one though, as the Animate Objects spell has to target "one Small object per caster level".
So you can make a murdered Halfling family dance like puppets on a string, but dead Dwarves still can't dance.

Are |

Yes, the animate objects spell can create larger objects, depending on caster level:
PRD wrote:
An animated object can be of any nonmagical material. You may animate one Small or smaller object or a corresponding number of larger objects as follows: A Medium object counts as two Small or smaller objects, a Large object as four, a Huge object as eight, a Gargantuan object as 16, and a Colossal object as 32. You can change the designated target or targets as a move action, as if directing an active spell.
So if you have a caster level of 16, for instance, you can create up to 16 small objects, up to 8 medium objects, up to 4 large objects, up to 2 huge objects, or one gargantuan object.

VRMH |

Animate Dead:
- Creates a permanent creature.
- Can be used to create minions of a specific number of HD, or with templates.
- Is a 3rd level spell.
Animate Objects:
- Lasts one round ler level, unless you cast another spell (Permanency) and cough up 15,000 gp.
- Creates only one type of creature.
- Is a 6th level spell.