Ponyo is an adorable film, with no real villains and gentle conflict between the characters.
The film, like all of Miyazaki's work, is visually stunning. The film starts under the sea with lots of weird and beautiful fish.
Ponyo herself is a twsit on the Little Mermaid, she's a goldfish who is curious about the world above the sea. When she meets Sosuke and accidentally ingests some of his blood she gains magical powers.
Recommended for any fan of animation and especially little kids.