This is a FANTASTIC idea!!!
What about:
Bobbing for "poisonous" apples. The apples could be injected with vodka or something like that. ( I am assuming you can do that to apples like people do with watermelons)
When I think of fairy tales I also think of castles and such. What about jousting? Maybe set up some sort of platform or inflattable and have guest joust and knock each other off. Not very scary but could be funny.
Also, depending on how much outdoor room you have, maybe some kind of haunted fairy tale forest. They could be "lost" like Hansel and Gretel and go for a walk through the woods finding different fairy tale scenes. Not really a game but anyway....
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