This film is from the director of Pan's Labyrinth, Guillermo del Torro and is based on a small boy Carlos, who is brought to an isolated orphanage during the Spanish civil war.
Upon arriving at the orphanage he manages to find himself a friend in Dr Casares and make enemies of a few of the other boys. He is given bed number 12, which you later discover belonged to a boy who seems to have vanished on the night which a bomb was dropped on the orphanage, but which didn't explode.
Strange occurances begin on Carlos's first night at the orphanage and because of a child's curiosity you find yourself gripped as he explores the basement after following sighs and the shadow of a ghost.
This is a classic ghost story and tale of revenge, secrets being discovered, friendship, teamwork, greed and love.
A exceptionally good film which I highly recommend, like Pan's Labyrinth it is subtitled and you do have to be a quick reader to keep up at points, but still a great movie, brilliantly written and fantastic cinematography to top it all off.