This film is a great introduction to the Star Wars saga, even if you start with the Originals or start with the Prequels. It is an over-all nice sci-fi adventure story which introduces the way the universe in Star Wars works and also introduces some of the most important characters in the series.
Many people seem to hate this film because of Jar Jar Binks. However, I do not mind him as he does provide some laughter in an otherwise mostly serious environment. Jar Jar is good for this movie's 'happier' tone, but it was necessary that he was pushed back for the rest of the saga, once it started to get more dark.
The CGI, while some of it may looked a TINY bit outdated today, is way ahead of it's time. The acting in this film is amazing and the characters are written well. Like I said, some of the characters are a bit more comedic/cheesy but it does fit with the somewhat colourful tone of this movie, while the rest of the series gets darker and more mature.
The Phantom Menace's characters are very good, even though it is hard to figure out who the protagonist is. The three main villains, Darth Sidious, Darth Maul and Viceroy Gunray are great for this movie and do pose as a threat; with Darth Sidious literally being the phantom menace, controlling things from behind the scenes; Darth Maul being a frightening villain and Viceroy Gunray being the head of an army, which invades a planet at the start of the film.
Another complain is that the plot does slow down towards the middle of the film, but this is really nothing.
Despite there being not as much action as the other films in the saga, The Phantom Menace certainly introduces viewers to the franchise and is surely worth the watch.