Ella, I think I may have a title for you. I say may because the plot description isn't entirely identical to what you wrote (for example, it takes place in 1881, about 100 years later than colonial times)
Alex, this took awhile, in part because this is not in my general area of expertise. However, I believe I have an answer for you. The film you are seeking is the 1989 Danish/Swedish film "Miraklet
Hey Jax, I can understand that Brian rejected the question; it's a tough one. Not much description to go on. But let me give you some pointers: See if it might be one of the '90s titles on this list:
Hi Jim, Might it be Attack of the Puppet People fra 1958: http://www.imdb.com/title/tt0051381/ - ? It seems to be out on DVD. If that's not the one, I think you could be remembering an episode
Jim, it took me awhile, but I think I might have an answer for you. I think the title you are looking for is one of these two films: "The Time Travelers" made in 1964, or "Journey to the Center of Time

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