This topic has probably been discused many times. People ask me this question all the time. Just wanted everybody's thought's on their favorite and why it is.
To be brave, I start of by saying my favorite is Episode 1: The Phantom Menace *gasp* I know what your thinking, how could I place it above the older films! Well for a few reasons.
1) I love the story
2) Love the Jedi and Maul!
3) I do believe very much that this is the most creative and imaginative of all the movies. (Battle droids is by far my favorite thing to ever be introduced into Star Wars)
4) I can never get enough of watching the Podrace. It took a lot of work in Lucasfilm to but that much detail into a very fast paced part of the movie.
5) I really like the end battles, albiet the space battle is no Endor, but it was cool to see Naboo starfighters in action.
6) Best lightsaber duel....ever!
7) Best music of all the movies! (Gotta love the Podrace arena music and Duel of the fates)
8 ) For a movie that was the beginning of everything in star wars, I thought it introduced characters well.
9) Beautiful work done of computer graphics! (It never ceases to amaze me the shots of Theed, I just wish they lasted a few more seconds!)
and many more reasons....
Now I know the acting wasn't super, but when I look back at this movie 20 or 30 years from now it won't look as terrible. And I know Jar Jar was to much for the kids, but hey....there's nothing wrong with that. Jar Jar was the first character ever in star wars that was designed to be a comic character. Young kids are then next generation of Star Wars fans the movie gave them something funny to watch.
Overall......great movie! I have to say though that Episodes 5 and 6 come close, cause they were great movies as well.