Went to see Pan's Labyrinth the other night. I've not seen tons of new films this year but it's right up my street and easily the best.
Apart from just being a bloomin' good film, it's got some of the best character and set design I've ever seen. A tiny detail I particularly liked was the faun's teeth - they put so much character into an already stunning costume/puppet. Also, the whole 'Pale Man' section is just bang on horrible fairytale imagery with piles of kid's shoes and stuff.
I illustrated a Grimm Brothers Fairy Tale at college. When I look back, I made a pretty bad job of it but it was great fun. It's something I'd like to try again.