What a charming film. Basque, with maybe the worst dubbing I've ever heard, so put it on English subtitles and Basque language. Lovely real-looking run-down sets, especially the forge, dark cinematography but not cyan/orange.
Set in early 19th C after the Basque lost their independence. Follows a blacksmith with a temper, a bizarrely fortified forge, and a deal with the Devil. The scarred, orphaned girl, Usue, is adorable, mean, and hilarious. The government fop isn't just there to rob the smith. The priest is a mean, conservative old bastard, the innkeeper and his grasping cronies deserve the bad ends they're all coming to, the town children other than Usue are brats. The demon Sartael is excellent, both makeup and mythical behaviors.
Cast, writing, and design are all perfect. The ending is very old-school D&D problem-solving.
Reminds me a lot of The Witch, or City of Lost Children, in this half-real, half-dreaming style and the grotesque people.