I am trying to remember a 80's anime movie I used to rent when I was a little girl. I really can't remember much, but I think it had a girl or something as the main character, a witch and evil squirrel that lived in this forest. It also had a building or castle I think. It's been so long, but I thought I'd give it a shot.

Thanks

Wild guess,.

There was a mouse that was turned evil
By a strange harpie making machine

The witch had a little young girl apprentice
Who was later rescued by Jack

Jack and the Witch

Hmm, I'm pretty sure you are thinking of "The Fantastic Adventures of Unico." There are a bunch of evil squirrels with glowing green eyes, there is a girl (who used to be a cat) who wants to be a witch and lives with an old woman in the forrest. There's also a creepy-looking castle...

It sounds similar to Barbie as Rapunzel

It sounds like Barbie as Rapunzel