This was a movie, I believe it was stop motion, but it could have been puppets. What I remember was a boy running away from his town because the other kids teased him for being ugly (they wouldn't let him play with them, and they threw rocks at him). He ends up getting captured after running away and is forced to be a slave/prisoner. I'm sure it has a not-so-sad ending, but I don't remember that at all. I just know it was scary as heck for a little kid.