Help me think of this movie

[Crash]

There was a movie I used to watch as a kid. I dont remember the name of it either.

1. Had something to do with an invisible cloak. 2 kids with british accents were traveling the mythical country side on a quest. At one point, there was a tree that they hid inside

2. they found a swordmaker at the top of the mountain who was chained to the mountain, and could make swords that cut through everything (cepts his chains)

I think it was cloak and dagger, but i can't find it anywhere.