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Came across this on TCM one night, and it's a strong, sweet story (with some mild conflict but no real violence except in the race at the end). Liz Taylor (as Velvet) and Mickey Rooney are great in their roles, but I think I liked the mom best.
There is a fairly strong proto-feminist theme here, if I'm not mistaken.
Anyway, I saved it for our 3.5-year-old and she loves the first half (after which she normally goes to bed). But I think older kids would like it, too.
It's a well-told story.