"Pan's Labyrinth" is one of the greatest of all fantasy films, even though it is anchored so firmly in the reality of war. On first viewing, it is challenging to comprehend a movie that on the one hand provides fauns and fairies, and on the other hand creates an inhuman sadist in the uniform of Franco's fascists. The fauns and fantasies are seen only by the 11-year-old heroine, but that does not mean she's "only dreaming;" they are as real as the fascist captain who murders on the flimsiest excuse. The coexistence of these two worlds is one of the scariest elements of the film; they both impose sets of rules that can get an 11-year-old killed.