I read a children's story when I was in the first grade (1979-1980)
about an old castle where the shadows of people move around in
reenacting scenes from the past. I seem to recall a young child had
wandered into the castle and someone in the castle tells the child
about the castle and the people who used to live in it. It was kind of
Princess Bride-ish in the respect the story moves from the child being
told about what happened to "flashbacks". I also seem to remember
there was a mountain that figured prominently in the tale. The
mountain was so tall that its top was hidden in clouds. I do not
recall the title or who wrote it, and I am 32 now so my memories of
the tale have faded but I remember I absolutely loved it. I hope
someone can help me! Thanks!

Hello.

It sounds like you're describing "Shadow Castle" by Marian Cockrell.

From a newsgroup message archived by Google Groups:

"I'm looking for any information about Shadow Castle, a book that read
and  enjoyed very much when I was in 4th grade.  It was about a little
girl who found a castle that was empty, but there were shadows on the 
walls as though there were people there.  She later met a young man
who told her stories about the castle.  "
http://groups.google.com/group/rec.arts.books.childrens/msg/5fbedeea162f2787?hl=en&

Various vintage editions for sale at Abebooks:
http://dogbert.abebooks.com/servlet/SearchResults?an=cockrell&y=0&tn=shadow+castle&x=0

---------
search strategy:
google groups: children's books, shadow castle

I hope "Shadow Castle" is the book that you had in mind. If not,
please let me know via the "request clarification" feature.

I think you've nailed it! I just ordered an "expanded version" from
Abe Books. Thanks again, and Merry Christmas to you and yours!

You're welcome and Merry Christmas to you!
-juggler

I am looking for this book as well. A little girl visits or lives with
her grandmother (think her name is Lucy) and she takes a walk with her
little white dog and follows him too far. He disappears behind a bush
and when she follows finds a tunnel into the ground. Things try to
grab her as she runs down into the tunnel. When she gets there, she
ends up protected in a fairy circle? sleeping and wakes to see the
castle. the man's name is Michael' (said differently). There are
shadows in the castle and the door knockers are goblin's heads. I read
this at age 10 and never forgot it. Did you locate it for sale?

I am also looking for another book which would be a miracle if anyone
recognized this as I do not remember the title of the book>also read
in 4th grade.  thick hardcover. (1978-80)There are two children
traveling with their parents sailing on a ship and a magical little
man (elf? unsure) smokes this magic pipe and causes all kinds of
trouble. At one point he's on their family farm riding their cow.

Motif,

If you'd like to post a new Google Answers question, I believe I can
identify your "magic pipe" book.

pinkfreud-ga, Google Answers Researcher

Dear Motif,
As my friend and colleague Pinkfreud suggests, you'll need to post
your inquiry as a new question.  Use this link:
http://answers.google.com/answers/askquestion?catid=0