Im trying to find the name of an old movie I watched when I was a kid. I used to own it bit I don't know where it went. I can't remember much of the plot. I remember there was an evil guy in some sort of tower or mountain with a telescope. I think his evil minions had no arms and really big mouths. I think they were defeated by putting a stick in their mouths so they could not bite, and all they could do then was jump around. I think the main characters got a hot air balloon at some point. The evil king might have thrown boulders at them? I think at some point the went inside a cave. And I think there was something about eating 'grub'? Or maybe it was really bad food when the get captured. I think one of the main characters has 4 legs.

It is very possible that half of that stuff I am remembering wrong...

I have tried seaching online for it and I came across The Moonstone Gem (1983)
That's my best guess as to what it is, but there is no information about it online so I cannot verify.

Amazon.com: The Moonstone Gem: Video (http://www.amazon.com/The-Moonstone-Gem/dp/B000FP6F3Q)

Ah, never mind, I found it. It's the adventures of Teddy Reuxpin (live)