Just good. Not as bad as all that. Not great. But good.
People so often confuse slick effects and high production values for being representative of good movies.
This movie has a number of things going for it. Firstly, it has John *beep* Saxon. The Sax is a great character actor (Enter the Dragon, Black Christmas, anybody?) and he is put to good use here. There is also the man from Battlestar Galactica, who is also put to good use. There is also some tan womanflesh in a fur bikini. These are all undeniably excellent things.
But what makes the movie good is really just the fact that it is about adventure. You've got your basic elf (the Green man), your fighter (Battlestar Galactica guy), your love interest (the blond lady), your vamp (tan bikini gal), your bad guy (John *beep* Saxon), your wizard (Science guy), and most importanly your self-interested but necessary thief (the thief guy with the great beard). This is a good set up. The characters are drawn up well, the combat is decently choreographed, the caves and castles are (just) scenic enough, and the plot moves quickly. This is an entertaining movie, even if the camera work is not the best and the effects feel homemade at times. Just enjoy it all, and don't worry if your friends don't get it.