Here are two of my favorite exotics. Both are "founded" in the real world, but make impressive trips into the Fantasy realm.
http://www.youtube.com/watch?v=M_o5gH-Wsig
This one keeps you wondering for quite some time what the Fantasy sequences are all about. The resolution was entirely logical... and kept the reality of the fantasy intact for some of the characters.
OH, and Théoden's in it.
http://www.youtube.com/watch?v=iO0LYcCoeJY
So colorful. Starts out so light-hearted and gets SO dark and depressing. The Fantasy makes most of the movie. But it is told by such an unreliable narrator that this reality can change at his whim. The pictures are vastly beautiful, the main kid is utterly charming with her broken English and I have never appreciated Beethoven's 7th symphony as much.