I interpreted the fantasy part of the story as a creation of Ofelia as an alternate and better situation than where she was residing in reality. At one point Captain Vidal and the Faun actually emit the exact same words (about obediance). I think that's when I became aware that these two places were parellel universes - one reality and one her twist on that reality. The Faun being her challenger that we was able to conquor and achieve some good - a choice she didn't seem to have in her reality.

However, I like the fact that is is a possible interpretation but yet there is still a lot of ambiguity. Things don't line up nicey and I prefer that over having everything all wrapped up in a neat package that you never have to think about again.

I LOVED the fairy-eating monster. He was straight out of mythology and fairy tales with a twist. He didn't diasppoint. The Faun, however, was my least favorite character to watch. He was just too mechanical - a mish mash of all sort of different contemporary fantasy character archtypes. There was some alien mixed with some War of the Worlds monster with a bit of Yoda thrown in and a dash of a few other comtemporary creations. I found him to be way too distracting for my tastes.

In the context of the film, both worlds are a fantasy, a fiction of cinema and thus equal in this deconstructed concept. I think our interpretation reveals more about our selves as the film poses an interesting question as to why anyone would chose to live in the world of reality full of pain, suffering, and death when another world (heaven/underworld) exists, or can be willed into existence (faith/belief). I think it also interesting to note that in Franco's Spain, the Fascists win, so even the brief victory/justice in the real world of the film are fleating