I'm sure it takes ok footage, but if your serious about making a movie of some kind, this is a terrible choice. This is sorta the equivalent of movie mode on a point and shoot still camera, except in high def. You have to remember that while this may be high res, it doubtfully has the pixel quality or colors that you'd find with a real camcorder, even an entry level one. This would be a good camera choice if you wanted to take videos of your friends or vacation or something.
Keep fishin.