PLEASE HELP!

I don't think anyone will be able to help me identify the title of this movie, since I have been trying to figure it out for YEARS! I remember very little about the film, but remember watching it once when I was very young. It could be from the 70's (possibly earlier), but I was born in 1982, so it was probably from the early 80's. So I think we can rule out anything past 1990.

I feel like the setting of the movie was in Europe, Scotland, or that it was set in Ireland, but lol... I could be way off on that.

There was a very magical, mystical, fairytale like quality to the film, but it was in full color and not an animation.

Here are the bits I remember:

*somehow (I think two) children are introduced (tricked, guided, stumble upon?) an entry to a magical world.

*I remember a lot of green, meadow-like, forest glades (like what you imagine you would see in Ireland) and I think that is where they enter and exit this world.

*I am not sure if there was a unicorn, rainbow, or leprechaun present that introduced them to the entrance (as I don't have a clear memory of it), but I feel like they might all or some have been in this movie in some way.

*Once in the magical world, I don't think the kids can escape and I think this "fairy" like land (again not sure if really fairies) seems to want to keep the kids and transform them to stay with them forever.

*I remember a masquerade like quality to the costumes in this world. I specifically remember winged character, like a butterfly woman whom (I believe had been transformed to be that?).

*I also remember something about this pit, or mudpile, swampy place that seemed to be alive with some sort of spirit or possess magic that I think transformed you.

*I think I remember seeing a jester juggling

*I think I remember mist/fog?

*The costumes were pretty fancy and there was face paint and masks? Maybe peacock feather adornments, etc.

That is about all I remember. Magical mud? Really? This description has haunted me for years and I would LOVE to just know what it was that I watched, and rest knowing that these weird vivid images where really from a movie and not some crazy hallucination trip that was probably the result of older siblings grinding something like paint chips on my food as a kid! :)

I remember seeing the movie at a friend's house and it felt so magical, but I can't find it anywhere and none of my crazy sounding clues help me come any closer to a solution.

Please help and again... sorry in advance for the crappy clue set. GOOD LUCK!

The Great Land of Small

WOW! Thank you so much! Not only for your help, but for responding so quickly! That was awesome!

I can't believe you found it or remember it too! It was such a weird set of images that I wasn't sure if my memory had combined another film or we'd ever be able to pin it to a movie. A pretty crazy, bad 80's, slightly creepy movie, but a movie still the same! THANK YOU, THANK YOU!!

You're very welcome :)