I saw this movie at age 7 when i lived in San Diego and after christmas, i went to see this movie in a theater and it scared the bejesus out of me as well.

I'm glad it's on youtube.com.

Yeh i saw this movie too at a theater at the age of 5 and also scared me shitless especially that Puppetino making Pinocchio into a puppet scene.

No Raisin, this isn't THAT Pinocchio! i remembered seeing this movie in theaters back in Christmas 1987, my mom took me to see it at a Mall theater in St.Louis and it scared the bejesus out of me even with that horrifying moment where Pinocchio changes into a puppet again. I own this movie on video since i found it at a pawn shop, i think this is still a cool and eerie animated movie that is also entertaining and worth seeking for it's one of those rare 80's animated jewels.