thanks to pye for the find.
its a korean horror film called DollMaster. and you can pretty well guess the plot. as it seems to be an embedded Google video player i'm going to guess it can also be found directly on google video and also possibly downloadable.
not stopping there, it seems Hollywood is in the process of remaking it for an American audience according to the news site here. although dated 2006 its not been released yet so i didn't miss it as previously thought.
i wonder if they dolls will be Barbies or Bratz? or will they stick to the Asian styled one?
on a related tip, here's curious post that outs a few people and gives them a way to cover their interest here.