Man I really liked the movie The Neverending Story as a kid. Now that I have 2 kids of my own, we watched this movie together. My 7 year old loved it and my 5 year old liked it but thought it was a little scary in parts. One thing I have noticed was that the special effects from then do not hold a candle as to what can be done now. Sure the movie is cheesy but I still enjoyed it. This is a good family movie. The special effects in parts of the movie may not be great but the story is really good.
Story: Bastian is a little boy who is kind of nerdy and has lost his mom. After running from some bully's he finds himself in a book store. He steals a book and skips class to read it. Soon he gets sucked into the story of Fantasia and their dying princess, a child warrior named Atreyu, colorful characters who live in Fantasia, A Luck Dragon (who kind of resembles a dog) and Atreyu's quest to save their home.
I highly recommend this movie. Oh and I also seen at imdb.com that they are going to remake this movie!