Yep, Bressanone/Brixen is the "Bavarian Village" where he gets into the brawl in National Lampoons European Vacation. And Val di Funes is the view it shows as he enters the "Bavarian Alps."

If you stay in Bressanone, try and stay on the walking street. The pensions in the hills are a bit of a hike. Also, there is a large parking lot at the end of the walking street, which makes day tripping there easy.