I just downloaded it and took a quick look. You’re right in that the acting is only so-so, but they did a great job on the special effects. They must have had permission from Lucas Ltd. or something in order to make it. If you haven’t seen it, I also recommend Duality, as it’s pretty good as well.
Overall, I would say the quality of the quality of those fan films is about on par with what you might find in the cut-scenes of some Lucasfilms games. You can get some really great professional quality 3D programs pretty cheap these days (by film production standards) so I’m sure that helps.