Don't know if Caille is still around, but I also remember seeing the film all these years ago and had the same experience!
The dream sequence involved Miss Carron dancing with puppets from a travelling show to the tune of Hi Lili. It was so sad and as it was one of my first visits to a cinema I was reduced to tears.

Like Caille throughout my life I've nerver forgotten the tune or the excerpt from the film...Ake