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Well said downthread, I'm just repeating this because it is so true.
"Graveyard of the Fireflies" was mentioned in an earlier post, but I can't imagine a film more inappropriate for young children; it's emotionally wrenching and both main characters die horrible deaths. It's an excellent film, but for teens and up.
It is a brilliant, honest film, but children can't handle it. I could barely handle it. I highly recommend every other Studio Ghibli film for kids (Princess Mononoke is a little violent), but not this one.