Looking for the name of a fantasy (kids) movie probably from the early 1980s with a golden owl and a two headed dog.

Clash of the titans? Bubo was a mechanical owl in this one.

Did it also have medusa and the kraken?

Clash of the Titans - Wikipedia, the free encyclopedia (http://en.wikipedia.org/wiki/Clash_of_the_Titans)

Pic of the owl...

http://www.firstshowing.net/img/bubo.jpg

The dogs name was Dioskilos

Purukivel agrees: That was my first guess, just based on the owl. If the movie featured Cerberus, that would account for the dog (although it's supposed to have three heads).

I read where someone involved in the film thought the three heads would have been too cumbersome for the stop motion technique they used back then... so they chose two to make it easier on them.