The Adventures of Elmo in Grouchland(1999)
In this movie adoption of "Sesame Street", Elmo loses his beloved blanket in Oscar the Grouch's trashcan, so he must go to Grouchland to get it back. Unfortunately, the greedy Huxley steals it, along with many other things belonging to the Grouches. Elmo must go an quest to Huxley's castle to return everything, while the rest of the Sesame Street gang look for Elmo himself.
This trailer was originally posted to YouTube by 0511april.