Has anyone else checked out the interactive D&D DVD referred to in the first link? It's pretty campy and not really worth repeat viewings, but it's certainly better than the 'official' movie.
As for the D&D movie, I think my favorite part was when those tentacle things came out of Damodar's ears. I just kept looking at the screen, slack-jawed, thinking, "What the hell?" Anyway, as long as the sequel has absolutely nothing to do with the first movie, it might be OK. I won't hold my breath, though.