I am looking for an old movie i watched as a kid in the 90s. It might have come out a lot earlier as my dad had a bunch of older films. I am almost certain it was live action. I think the setting was like a fantasy village with circular houses(I think like gnome style house? it was very cartoony but it was live action) with green grass and gardens. One of them had a bad guy whom at one point traps a character when she(i think?) falls down a purple tunnel into a jail cell. I think she talks to the bad guy whom had a purple theme going on. I know it isn’t a lot to go off of but I just vividly remember a girl falling down a dark/purpleish tunnel into a cell and a witch-like villan trying to infect the city. I think the villan can spy on what is going on up in the city through a spyglass/periscope.