I forget what's this movies called, it's a japinese anime movie where a little girl and her parents go to look at there new house and then there in this town with all these monters and here parents go to a buffae to eat and she wanders off... she ends up working in a mill for this thing then her parents are turned into pigs and she falls in love with this boy who is really a water dragon who gets beat up by these little paper birdz...

I know what movie you're talking about - there's like this great big "baby" type character and like twin old witch ladies - I think one is good and one is bad(?) and at one point the water dragon character is injured (IF we're talking about the same movie :) - this was one of my sons favorite movies, I only saw bits and pieces of it... I know the title has "Away" in it, maybe something like -sail away, or like far away - something along those lines...

I got it!! - Spirited Away -