*sniff* I remember this. Disney was in the process of buying all the rights to the non-Sesame street Muppets when Jim Henson died. (Kermit is the only shared Muppet between the two groups.) Disney chose to go ahead with the purchase even without Henson.
Jim Henson's the Storyteller (1987) Nine gripping stories based on famous myths and legends (and starring Brenda Blethyn, Sean Bean, Miranda Richardson, Gabrielle Anwar, Michael Gambon, Jane Horrocks and Derek Jacobi) are presented here.