Babes in the Woods

Two horribly animated children are skipping through the woods until they become frightened of everything from branches to bunnies. They discover an elf village and end up playing with them before an evil witch lures them to her candy cane house where she has other kids in captivity, only they're turned into various nasty creatures.

The kids break free, rescue the other victims and encase the witch in concrete or something, which ends up in the creation of "The Witch Stone".

I wasn't charmed by Disney's version of this Brothers Grimm tale. The animation wasn't that good and without the Disney trademark of anthropomorphic animals it just felt awkward.