I can understand that this film is described as "nightmare fuel". As a little kid, I never made it past the first five minutes; that train is freaking scary! Nowadays, however, Little Nemo is one of my favorite animated films. I have the DVD (which, as it happens, is longer than the VHS version), and it charms me every time. It has a lot of scary moments, but it has a whimsy that is missing from many childrens' films today. I also like it because it doesn't talk down to young audiences; it's fairly sophisticated, with a solid but subtle message.