My review was written in January 1990 after watching the movie on AIP video cassette.
Boasting one of the nuttiest premises in recent fantasy film history, this direct-to-video release is an easy-to-watch spawn of the success of "Gremlins".
Proper title would be "Elf" rather than "Elves", since low-budgeter coughs up only one puppet creature. Impossible-to-swallow plot hook is that a group of neo-Nazis, living in Colorado Springs (!) is planning a Fourth Reich based on mating an elf with a special virgin girl to create a new master race.
Supposedly those mystical Nazi scientists during World War II stored the genetic information in a two-foot tall elf, awaiting their big chance. Borah Silver plays Grandpa, a Nazi who impregnated his own daughter (Deanna Lund) to produce a supposedly perfect offspring, lovely Julie Austin, who's poised for the grand experiment that has to take place on Christmas Eve.
Dan Haggerty plays a down-on-his-luck security guard working as a department store Santa Claus (!) who tumbles on to the weird scheme and strives to save Austin and the world. Open ending predictably is a shot of the etus, a result of a puppet raping her (!).
This sounds silly and is, though director Jeff Mandel manages to keep things interesting despite the hokum. The incest subplot is handled quite well for dramatic impact, and the effects, designed by VIncent J. Guastini for Fantasy Workshop, are okay. Script is not above making fun of star Haggerty's real-life problems, but he seems a good sport about it.
Acting is variable, with Austin's sympathetic performance the glue that holds one's attention. Lund, a former starlet familiar from Jerry Lewis films and tv's "Land of the Lost" series, is effectively cast against type as the mean mom/half-sister. Silver's accent as Grandpa is a joke and Allen Lee takes the student-acting booby prize as a goofball professor.
