There are a number of these. Europeans, especially Eastern Europeans, have put out a lot of live action fairytale movies.
One of the more famous and well regarded of the French movies I can think of is THE DONKEY SKIN (1971):
http://www.imdb.com/title/tt0066207/. It should be available, it's sitting in my Netflix queue right now.
There's also Jean Cocteau's classic B&W LA BELLE ET LA BETTE (1946):
http://www.imdb.com/title/tt0038348/, but its really more of an art film than a kid's movie.