Obi-Wan Kenobi's pow wow with Luke at his home lays out much of the exposition one needs for the story of the Jedi, Darth Vader, Clone Wars, etc.
The Phantom Menace never approaches that in the least, they just dive in head first- alas theirs was a shallow pool.
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The prequels were written with the pre conceived notion that everyone has already seen the originals. First time viewers should always watch the movies in order of release, because they are written with the originals in mind.
If Lucas' intention was to have next generation viewers enjoy the movies 1-6, why in God's name would he not explain jack sh** as to what was going on? No explanation of a Jedi, a Sith, the Force...nothing.
One joke I really liked in The Phantom Menace was when Watto shut down Qui Gonn for waving his hand in his face. A Star Wars virgin wouldn't even know this was a joke and therefore wouldn't even crack a smile.
I have come to believe that the best sequence for watching the entire series is as follows, and this isn't mine, but after seeing it by others, it makes perfect sense.
1. Star Wars EP IV: A New Hope
2. Star Wars EP V: The Empire Strikes Back
3. Star Wars EP I: The Phantom Menace
4. Star Wars EP II: Attack of the Clones
5. Star Wars EP III: The Revenge of the Sith
6. Star Wars EP VI: The Return of the Jedi
Some people think The Phantom Menace is more or less optional, but I still think it has some merit.
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You're makin'... me... beat... up... GRASS!
Someone on this board made this recommendation several years ago and for me its the best order. It keeps the best secrets, and makes it middle, beginning end and not middle, end and beginning.
In the kingdom of the blind, you're the village idiot.
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