Ah, I've almost forgotten about this film!
Such a strange and yet magical story with characters that are similar, but different than your usual characters. The animation's not the best of quality, but it's not the worst either.
Here's a basic rundown: You've got the Princess Irene, a basically cute, young princess that discovers a magical secret. Her adventures with a newfound friend lead them into the land of the goblins. Sounds basic, right? Just watch the film! You'll like it.
Don't forget about the goblins . . . yes, they are grossly funny (very gross).
This is a gem. Not a perfect and well known film, but it's worth a watch (if you can find it).