I’ve been trying to remember this movie for YEAAARS. Had to be made in the 70’s or 80’s. All I remember is one scene, it’s like a kid and some other weird things going on some pilgrimage or trip to see a king or something, or to find someone…the scene was animated but I don’t think the entire movie was. The closest thing I can find to what it looked like are the paper animation scenes in Monty Python movies…
http://ranger.uta.edu/~tiernan/CSE1310/fall11/jpg_illus/HolyGrail147Robinsminstrels.jpg
Bedknobs and broomsticks?
Could be “The Phantom Tollbooth”.
http://en.wikipedia.org/wiki/The_Phantom_Tollbooth_%28film%29
Also could be “The Water Babies” from 1978.
http://en.wikipedia.org/wiki/The_Water_Babies_%28film%29
Animated Lord of the Rings from 1978. Some of the animation was live-action that had animated effects drawn over it, making for the weird half-animated effect you described. http://www.imdb.com/title/tt0077869/