Okay I saw this movie as a kid, a long time ago so the details are sketchy. I can't for the life of me remember the name of it. It's not willow but I do believe there are dwarfs in it and a male kid lead. I can recall one scene where the kid and dwarfs are suspended over this shadowy pit locked in metal cages. It's not animated. Sorry that I can't provide anymore details hopefully someone knows what I mean lol.

Labyrinth, Princess Bride?

Neither of those, I'm wracking my brain to remember another scene. It was a kids movie but kind of dark. It left an impression.

Time Bandits! Check it out
Took me a week to find this lol
YouTube - ‪Time Bandits Movie Part 1‬‎ (http://www.youtube.com/watch?v=tNmsZTwylak&feature=related)