I once saw a movie, where a man and his wife were very distraught over the death of their daughter. She was a little ballerina or something, and her soul was in this forest. There were souls of other children as well. One of the children was a girl and she had been there the longest. She was all dressed in white and resembled an owl, and I think she as able to turn into an owl as well. I have been trying to figure this out for years is there anyway anyone knows what this is?

I am going to be of no help... I don't know but it sounds like a very intresting movie if you ever find out the title please let me know.

Is it Ladyhawke. It was done in 1985 with Michelle Pfeiffer

The film you are looking for is a TV movie from 1993 called "They" (aka "Children of the Mist"). A plot summary at imdb.com states: "A man (Bergin) that is unable to express himself emotionally, loses his eleven year old daughter in a car accident after missing her performance in a ballet due to his over-ambitious job dictates. Gradually his guilt becomes worse, threatening his relationship with his wife (Mahaffey) and second, younger daughter. He 'stumbles' onto a blind woman (Redgrave) who has the gift of being a seer, as well her country home is occupied with the lost souls of children, including the man's daughter, and he finds himself having to work through his feelings in this setting."