"Emperor's New Groove" - that one slipped so much under the radar, it's crazy. First time I ever saw animated characters have so much chemistry ... Esme and Kronk's Mad Witch and Dumb Pet relationship, Cuzco and Pacha's bantering, etc. Not to mention Pacha's wife and kids are a scream.
For live action, I'd go with "Bedknobs and Broomsticks". Walt's last movie, he died during the making of it, so it's sort of a tribute to his own magic. (His talents, not his brother's soul-sucking business abilities.)