Rewatched this last night:

One of my Oz films, and one of my fave '80s-fantasy films (the other two are Labyrinth and Dark Crystal).
For those who don't know, this is NOT a direct sequel to the 1939 MGM classic. It's actually a loose adaptation/mashup of the second and third books in the OZ series, The Marvelous Land of Oz and Ozma of Oz, though some elements from the other movie (i.e. the Ruby Slippers are used in lieu of their original novel counterpart The Silver Shoes) and even a few from other Oz books (i.e. the financial woes of Aunt Em and Uncle Henry, as seen in The Emerald City of Oz).
It's also much more true to the books than almost any other adaptation. For one, this film's version of Dorothy Gale (played by Fairuza Balk in her first film role) is more of the tomboyish prairie girl from the books, as opposed to the damsel-often-in-distress version played by Judy Garland (whose Dorothy probably broke down crying more in the 1939 film than in the whole of the Baum-written Oz novels combined). Now, there are some obvious differences, like the character of Princess Mombi being a composite of the old witch Mombi from "Land of Oz" and Princess Langwidere from "Ozma of Oz", or virtually no mention of Oz's nearby neighbor The Land of Ev (where Tik-Tok is really from and is the Royal Army of). I won't give away any more, but I'll tell you that the Baum-written Oz novels are public domain.
The DVD I own is the Disney release, not the older and more rare (not to mention 4:3 Pan and Scan) Anchor Bay release, though the former is not much for special features (there's some TV spots taken from old transfers, a film trailer, and a feature with Fairuza Balk, who also does a brief intro to the film) or even well-done menus (really just static screengrabs as background with WordArt titles).
But until we get the kind of DVD (and eventually Blu-Ray) release of this film, with the same standards as other Disney releases, the current release is more than enough.
But watch this before you let your kids watch it, because some scenes really do rationalize the film's PG rating, which was more PG-13 by '80s standards. Don't believe me?
WATCH THIS SCENE AND THEN ASK ME AGAIN IF YOU BELIEVE ME