Does anyone remember this movie?!?

It is a children's movie from the early to mid '90s, about a prince and princess who encounter an evil man who can turn into a dragon and turn people to stone by making eye contact with them. The man bewitches the prince into being an ugly beggar. The princess runs from the evil man and into the forest during the dark of night. She winds up at the little cottage home of several small female dwarfs (one of whom was named Mudsy!) They encounter Mother Nature who tells them to save the prince, she must travel to these rainbow falls. Along the way, the evil man tries to sabotage the princess and the dwarfs. The prince, disguised as the beggar, helps the princess along the way even though she is disgusted by him. Lo and behold, the evil man is thwarted at the end of the movie and the prince and princess are reunited. WHAT IS THE NAME OF THIS MOVIE?!