Once Upon a Time (1976). Rolf Kauka, director. Italy / West Germany.
I had found this webpage before by googling random combinations of "girl" AND "well" "falling" years ago, but since the DVD of this film was not out until 2006, the site was not updated with "once upon a time" being a variant on the diamonds and toads until 2006.
Anyways, this is perhaps the most excited I have ever been about seeing a movie in my life. Godspeed Amazon.com, godspeed!
After finding out the name, I even found a website with stills from the animated film! SO PSYCHED!
About Hoggle: His red spots are looking better. I took him to Chicago Exotics PC yesterday. He was scared as hell to be there. Apparently it's a bacterial infection. Dr. Horton is growing a culture and seeing in 2-3 days what it is. I'll keep everyone posted! He's been a bit huffy since he's been bathed, poked, prodded, lotioned, and had a medicine squirted into his mouth. The $300 so far have been worth it since he seems a lot less red. I just signed him up for Veterinary Pet Insurance today (petinsurance.com) for $9 a month.