The only details I can remember from what I saw of the program playing on a TV at a (gay) club are these:

-It seemed to be set in medieval period.

-Similar to "The Dark Crystal" in its style. I do not recall any "human" characters. Some of the characters had bulbous noses. (It is reminiscent of a Henson production, however aspects of it seemed decidedly PG-13 or higher)

-I would endeavor to guess it was produced in the late 70s or early 80s.

-There was a princess trying to, I believe, protect some kind of phallic-shaped baby.

-There were soldiers or knights of some sort.

Because I saw it at a gay club, I always thought it was some sort of cult classic in the homosexual community, but no one has been able to identify it.

I even tried contacting the club and no one seemed to be sure as to what I was referring.

Can anyone help me identify this movie based on this limited information? Thanks!

This is kind of a shot in the dark but you might want to check out Jim Henson's "Storyteller". It has a lot of different stories in the movie, and some of them are kind of strange, but still cool. Anything he does is cool. :) Here is the link... hope it helps.. if not... check it out anyway if you're a Henson fan.

http://www.amazon.com/Jim-Hensons-Storyteller-Complete-Collection/dp/B0000A2ZU6

Yes, try watching some of Han's My Hedgehog which is a Jim Henson's Storyteller episode that features a strange looking baby.