years of searching, finally recovered (Spoilers within)

I went on vacation and On a whim, I happened to come across this film in an old public library. I rented it and watched it after years of wondering what the heck I'd been subjected to as a child of 5, I now put my nightmares to rest. A quick synopsis:
(SPOILERS)
The story follows a kid who gave some money to this whino the day before he was burned to death in a fire. The boy is curious and goes into the burnt house and is severely scared by a ghost and as a result of fright, his hair falls out. During the night the ghosts come and give him a recipe to grow more hair, it works...too well.
The hair doesn't stop growing...(funny side note that we probably didn't get because were too young was that his little freind asks to borrow the solution for "down there!" and spends half the movie walking around with hair growing out of his pants.) So for some odd plot twist the kids art teacher kidnaps him and all his freinds and uses the boys hair to make magic paintbrushes that turn whatever you paint into reality. The boys freind who is also kidnaped, cons the man into painting the old burned house and going inside. The art teacher does , becomes scared and all his hair falls out. Then the boy goes into the house, confronts the ghosts and his hair stops growing, the cops come and save the kids from the art teacher. Really weird movie.
Still trying to find other strange 80's Disney greats like Mr. Boogedy, Boogedy's bride, Ollie Hopnoodle's Haven of Bliss, and others.