The short version is this: This film is simply fantastic. Absolutely perfect. A must see.
And the long version: This film is simply a classic. I have never seen such an amazing piece of animation, or storyline (even if Cosgrove Hall didn't write it...). The characters are simply delightful, each puppet is crafted in a 'beautiful' way - these puppets are artwork in themselves. If you ever get your hands on this film, pay attention to the animation. It is phenomenal, especially for a 1990s film. And the detail, like the expressions in the faces and the background characters, and little things like that that make this film magical. In some cases, it even puts a little humour into it (such as the banquet scene).
As an animator, myself, I think this film is absolutely amazing. A great film for kids, and adults, to enjoy. If you ever get the chance to see it, make sure you take it, as I'm sure you will enjoy it.