Just finished watching Pan's Labyrinth, and I must say I adored it. A fantasy movie that eschews whimsy: and is remorseless in its application of the logic of its world. Wonderful and terrifying and sad, and how I like my fantasy, and perhaps the best integration of a fantastical world with the "real" I have seen in a movie.
It's the perfect fairytale, and like all good fairytales it's as brutal as all hell.
If you haven't seen it, get it out now.