Hi my name is Leah. I need to know the name of a cartoon movie that has a girl named Irene or Ireney in it and she lives in a castle. But some how she has a magical ball of yarn that glows and goblins take over their castle. If anyone has a clue to what this movie is please help me. Its really driving me crazy!

The princess and the goblin
Toonhound - The Princess and the Goblin (1992) (http://www.toonhound.com/goblin.htm)
The Princess and the Goblin (1992) (http://www.imdb.com/title/tt0107875/)