This is a long shot because all I remember are these hobbit like creatures are the main characters. There is a scene where they are involved in a battle in trenches and all of a sudden real footage of tanks and soldiers attack them. Its pretty out there. Jes I hope I didn't dream this one. I think at the end one of these little guys heads to a castle to face some bad dude. Must be an 80's movie cause I saw it when I was a kid.
