I used the basic Dragonstar Rules for my own campaign, but I changed very much (background, rules).
As far as I played or read the original game, I think it has some great potential. The storyline and background allows for many interesting adventures.
It's a great setting and there is a very good mailinglist at Yahoo dedicated to discussing Dragonstar. I'm starting my campaign up soon after having finished my RttToEE campaign. I'll be using the TV Structure article from Dragon 293 as a basis for the campaign and it looks very, very promising and my hopes for this campaign er staggering.
I'd recommend that you download Neo's rule supplements for Dragonstar (especially the Spaceship design pdf is a MUST).
Dragonstar is a great world, and the books that they have come out with so far are good as well. Also look into the following books for dragonstar games.
Arsenal - book on technomagic weapons
Factory - book on technomagic computers, robots, powered armor, and cybernetics.