This movie is similar to monty python style movies... a few of the main characters are a little girl and an elderly man. It's set in older Europe, during some war time. Some how the man is injured ( I can remember them being on a stage, perhaps in a grand old theatre ) and the adventure starts when they travel (time travel or portals or something) to escape "Death" (big dark robed scary creature with a sythe) then meet up with a few other men to form a group.

One of the scenes the group land in an ocean and can't seem to swim to the surface.. only to find out that they landed upside down! You can see their legs sticking out of the water.

Another scene that sticks with me is towards the end of the movie one of the groups members rides on a cannon ball.

Sounds like The Adventures of Baron Munchausen.

Possibly Time Bandits (same director as Baron Munchausen.