Kids show with goblin puppet things that played at night [S]

Seems familiar. I remember the setting taking place during night in a dark room where the puppets would lay in beds.

Is this in the ballpark? Eureka herself looks kind of like a gnome and I seem to remember her telling the other characters stories once or twice (probably Magellan, the dragon). Wikipedia says the dragon tries to stay up past his bedtime and Eureka was kind of a parent/older sister figure to him, and that more or less checks out both with your description and 25:25 onward.

www.youtube.com/watch?v=8Gou17FkKic

Parenthetically, I was surprised that reruns of the show were still on during Nick Jr.'s Face era. It started in 1989, and it was wrapping up its original run (if it hadn't just finished it) by the time I was watching it in the very early '90s. Face didn't show up until 1994, by which point I'd pretty much stopped watching the block unless nothing else was on. Even as a grade-schooler, I thought he was annoying as hell and probably kind of scary to younger kids.