I've spent quite some time looking for this movie, so I'm kind of starting to doubt its existence, but this is worth a shot. It follows a brother and sister, they live in the woods and I believe they were orphaned. The brother starts being kind of evil, and ends up being at this castle. There is also something to do with a flute that I think makes people into paper doll soldiers or something of the like? That's about all I've got, hope you can help.

Vague resemblance to

Unico: In the Magic Island

Unico is a baby unicorn with a special natural ability to make friends. The gods are envious of his gift and order the West Wind to destroy him. When she sees the innocent unicorn she can't bring herself to do it so she carries him away to hide him. He meets friends along the way.

The second movie has him meeting a little girl named Cherri (Sherri).Cherri's older brother had run away from home. When he returns he is the apprentice of an evil puppet wizard who has a plan to turn all of humanity into wooden puppets. Cherri's brother Toby spares his little sister by hiding her from his master. After Toby and his master the evil puppet Kururu leave, she and Unico go on a quest to the ends of the earth to find the all knowing Trojan horse. It's said that it should know of a way to turn her family and friends back

Watch Unico
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