This is the one that starts the whole saga. It's probably the least best of all the films but is still an enjoyable movie. I'll tell you one thing, this one's for the kiddies. The Phantom Menace has the least amount of action but introduces you to the characters and their roles. It shows the background of young Anikan Skywalker, a local boy from Mos Eisley. Anikan is a slave. That is until a Jedi Knight called Qui-Gon Jinn comes and changes Anikan's life forever. Qui-Gon entered Anikan into a pod race with Anikan's pod and made a bet with Anikan's master, Watto. If Anikan won he would no longer be a slave. Anikan did win and Qui-Gon took him to Coruscant to be trained as a Jedi. Qui-Gon took Anikan to the council and asked for their permission to train him. Qui-Gon did not get the council's permission. Meanwhile, Naboo was under attack by the Trade Federation forces. Qui-Gon and his apprentice Obi-Wan Kenobi were sent to fight for the Republic. That's where Qui-Gon and Obi-Wan met Darth Maul, the apprentice of the evil Darth Sidious. Just before Qui-Gon and Obi-Wan ran into Maul Qui-Gon told Anikan to find a safe place to hide. Anikan hid in a Naboo Fighter but ended up saving the Republic by blowing up the Trade Federation's Battle Station. Back on Naboo Qui-Gon was killed by Darth Maul during in light saber duel but his padawan, Obi-Wan got revenge and sliced Darth Maul in half in what I think was the best light saber duel in all the films. After the Republics victory on Naboo there was a celebration and the council told Obi-Wan he could train the chosen one, Anikan Skywalker.
I would give Episode I, a 7.5 out of 10.