I actually watched this move on our Movie on Demand service via Rogers via the HD selection and it was indeed a precious story! The story takes place during WWII in Scotland and focuses on a little boy who is counting off the days until his father comes home from a long tour of duty.
During that time he finds an egg by the water at Loch Ness and brings it home. It hatches and we meet the little water horse who grows quickly every time he eats - and he can pack it away. With him comes all kinds of problems, fun and adventures for Angus, the little boy and his family.
When a large group of soldiers show up at his home and set up camp in order to try and keep Loch Ness and the surrounding area safe from enemy soldiers who are suppose to be bringing their subs into the Loch, a number of misadventures take place that have the little water horse and Angus right in the middle of things.
The special effects are quite good although there is a part of the story where the little boy, Angus seems to have extra good lung capacity as he and the water horse frolic in the Loch diving beneath the water for what appears to be a little longer than humanly possible :) but overall, the story is a cute one and there is even the capturing of the Loch Ness Monster's famous photo which many of us have actually seen in books and stories about the Loch Ness Monster.
This "monster" though is a good friend to Angus and when it comes time to ensure the water horse remains safe, everyone pulls together to help the water horse be free.
Overall, it was a good story which is "based on a true tale". Although there are some scenes that might be a little scary for little ones over all the movie itself captures the imagination and makes us believe that indeed, there very well could be such a thing as water horses!