I saw this movie when Mystery Science Theater ran it in 1993. It is the worst thing I've ever seen. So bad in fact, that by sheer freakiness, this movie must get a ten rating because it has to be seen to be believed.
Whoever wrote this script with children in mind should be beaten. I mean, really, the Devil vs. Santa? Visions of Hell? Creepy laughing wind-up reindeer? Forced Child labor with racial stereotypes? It ain't Sesame Street, that's for sure.As Crow exclaims during the MST3K showing, "This is good ol' fashioned nightmare fuel!"
There's plenty of weird innuendo and screwed up theology. Merlin (presumably the Arthurian Merlin) hangs out with Santa in his crazy castle in the clouds (i.e. Heaven). Santa talks about baby Jesus and sends letters to "Mr. Stork" for children who ask for siblings. There are symbols around the castle that either look like pentagrams or RAF stars.
My best friend and I have watch it every year since 1993 and we subject anybody we can hold down for 2 hours to watch it with us.