OK so its from the 80s its about this little boy who wakes up from sleeping in his bed and sees a lot of creatures in his room that talk to him... then at some part he's flying on his bed... then another part he is flying on a blimp looking thing with a basket attached... sorta like a hot air balloon... and he's flying it through some sort or colorful tunnel thing... at another time in the movie there's this big monster he has to defeat I think and its like this big black(or red) scary looking thing... and I think they make him a prince and the princess falls in love with him... yes it sounds trippy and confusing.. but I reallyyyy need to know! (its animated by the way)

Part of it sounded like "james and the giant peach" by roald dahl... then again maybe not!

It sure sounds like James and the Giant Peach... but that was 1996.
Does this look like it?:
http://www.imdb.com/title/tt0116683/

I think the movie is "Little Nemo: Adventures in Slumberland" (1988) it is on imdb if you need more information.

Definitely not james and the giant peach

I think the movie is "Little Nemo: Adventures in Slumberland" (1988) it is on imdb if you need more information.

Definitely little nemo.