When I played little people the dog was always the villain. Once the Sesame Street set came out all the muppets were his monster henchmen. He controlled the castle dragon too.
The smiling kid with the red hat was me, and I was the FP land superhero, and I made a little cape for myself. Sometimes the knight was me wearing iron man type armor.
My FP little people come in second after megos as for being the most important toys of my childhood.
The castle is perhaps the best playset ever made.
Evildoers tremble at the name... Aaron