With ''Life Is Beautiful,'' writer-director-actor Benigni transformed a catastrophic event (the Holocaust) into a fable. With Pinocchio, Benigni transforms a fable into a catastrophic event. Despite the pointy hat and breadstick nose, Benigni just doesn't look like a puppet itching to be a boy. He looks like a 50-year-old Italian man itching in a Nancy Reagan pantsuit. Hey, enough grappa and the Funforeverland circus scene is molto Fellini.
EXTRAS Just in case it was Breckin Meyer's (''Inside Schwartz'') dubbing that made Miramax's $45 million fever dream a box office flop, the DVD includes the versione originale with subtitles. In English: F; In italiano: D+