Gedo Senki - Tales from Earthsea
Trailer: http://www.ghibli.jp/25trailer/ged_lg.html

Initially, "Earthsea" author Ursula K. Le Guin wanted Hayao Miyazaki to direct the film. At the time, however, the elder Miyazaki was tied up working on Hauru no ugoku shiro (2004), and thus could not come on board at the right time. Not wanting to pass up the opportunity to make the film, Miyazaki's son Goro Miyazaki stepped up to the plate and decided to make this his first film.
Plot Summary: Something bizarre has come over the land. The kingdom is deteriorating. People are beginning to act strange... What's even more strange is that people are beginning to see dragons, which shouldn't enter the world of humans. Due to all these bizarre events, Ged, a wandering wizard, is investigating the cause. During his journey, he meets Prince Arren, a young distraught teenage boy. While Arren may look like a shy young teen, he has a severe dark side, which grants him strength, hatred, ruthlessness and has no mercy, especially when it comes to protecting Teru. For the witch Kumo this is a perfect opportunity.