Adaptation Displacement: This is far from the first work about the outlandish tales of Baron Munchausen. The original stories were published in the late 18th century, and the first film based on his tales was made in 1911, with several other versions filmed throughout the 20th century. A German film made in 1943 was particularly similar to Gilliam's version visually, to the point that a legal disclaimer had to be included in the 1988 picture. Two animated films by French filmmaker Jean Image were also produced starring the Baron and his superhuman companions. This is the best-known version for modern (Western) audiences, however.
Harsher in Hindsight: It can be hard to watch some of the dangerous things that happen around Sally after finding out that Terry Gilliam repeatedly put nine-year-old Sarah Polley in danger, traumatizing her so badly that years later, when she learned that he was making Tideland, she contacted the authorities and advised them to keep an eye on him.
Let's begin with the silly fact that the main city of the game is called Baron, then we can also name the protagonist being attacked by leviathan (a giant sea monster), going to a volcanic-underworld and going to the moon. Also, this movie is what inspired the Final Fantasy saga to use the Grim Reaper for the 'Death' spell.
Woolseyism: In the Italian dub, when Albrecht tells the others he's tired of being a strongman and wants to be more sensitive and delicate, Berthold asks him if he has become "a faggot".