While parts of the movie can drag a little long (depending on your taste for MIDI music and fractured neon screen shots), the end becomes truly poignant when Mario confronts his primordial ancestor Pong in the guts of his own video game, then contemplates his Id in a giant pixilated face before undergoing a kind of transubstantiation.
Part 2
Part 3
Cory Arcangel's work can be seen on his website.
Paper Rad is also all up in the interweb.