in elementary school i read a book about two little girls who had
dolls that looked exactley like them. somehow or another they ended up
drinking a magic tea and they were switched with the dolls. they could
only move when there were no people in the room. they made friends
with other toys and were trying to switch back with the dolls. i
remember some of the illistrations were of two identical blonde dolls except
one was a little taller then the other and a pinch faced round headed
man with round glasses i believe his name was mooney. does this sound
familiar to anyone. I've been racking my brain for 3 days now. P.S. my
copy had a drab grey cover

Your book is "The Village of Hidden Wishes," by David Fletcher.

"The Village of Hidden Wishes 
 David Fletcher, ill. by Dorothea Stefula 
Two little girls change places with their two dolls. An unusual fantasy for girls."

Robin's Roost Treasures: The Village of Hidden Wishes
http://cache.tias.com/1761/PictPage/1922707050.html

"It was a story about two sisters who owned two dolls that looked just
like them. They foolishly wished that they could trade places with
their dolls for a day and mentioned the fact to the proprietor of the
local doll hospital. As they had deposited their dolls in the hospital
for repair due to less than attentive care (their dog had savaged the
dolls), Mr. Moon was less than sympathetic. The upshot of the story is
that the girls do indeed trade places with the dolls and are tossed in
the toy cupboard to face the ire of the rest of their neglected toys.
The ringleader of the angry mob was Big Teddy."

LOS ANGELES TOY, DOLL & AMUSEMENTS MUSEUM 
http://www.latdamuseum.org/weblog/2003_10_01_latdamuseum_archive.html

If you are interested in finding a used copy of "The Village of Hidden
Wishes," these links will be helpful:

Amazon: Used and New - The Village of Hidden Wishes
http://www.amazon.com/gp/offer-listing/B0007E1V20/ref=dp_olp_2/104-6727808-8065539?ie=UTF8

AddAll Rare, Used and Out of Print Book Search
http://used.addall.com/SuperRare/RefineRare.fcgi?id=061020125141470577 

My Google search strategy:

Google Web Search: "village of hidden wishes" dolls
://www.google.com/search?hl=en&q=%22village+of+hidden+wishes%22+dolls

I hope this is the right book! If it is not, or if anything is unclear
or incomplete, please request clarification; I'll be glad to offer
further assistance before you rate my answer.

Best regards,
pinkfreud

OH MY GOODNESS I  DIDN'T THINK I'D GET AN ANSWER SO FAST. THE ORIGINAL
BOOK I HAD DIDN'T HAVE A NAME ON THE COVER AT ALL. THATK YOU SO MUCH
IT WAS WORTH THE PRICE

"IT WAS WORTH THE PRICE"

For that price your lucky to get an answer.  

It was fortunate for you that Pinkfreud had to let loose some of her
useless knowledge.

Bowler...hang your hear in shame. Pink is the best. And knowedge is power.

Sorry pugwash.  I meant it in a good way.  I know Pink is the best. 
This was directed at the customer not the exalted Pink.

Bowler,

I wasn't a bit offended by your reference to my mental storehouse of
"useless knowledge." I have posted several GA comments in which I used
similar terms in describing the glut of trivial information that fills
my head. Until GA came along, this stuff was useless indeed. Now I can
finally put it to use, and I feel quite a bit better about it.

~Pink

I meant to post this in the comment above, but the cat stepped on the
"Enter" key too soon.

Here's one of several places in which I have used the term "useless"
in reference to my mental trivia collection:

http://www.answers.google.com/answers/threadview?id=735055