I remember renting a movie over and over again as a child, but I cannot remember the name of it. I really can't remember the story line, although I remember some of the characters. It was definitely an innocent movie, with all the characters being puppets, that looked an awful lot like the Hugga Bunch. Also there was a stuffed teddy bear that always reminded me of the Snuggle fabric softener bear. I also think that there was only 1 human girl in the movie, maybe a sibling for her as well.

This has been driving me nuts for years. Any feedback is greatly appreciated.

Maybe Teaddy Ruxpin? That's the only one I can think of.