BloodSpell Episode 1 is out (along with e2 - 4 currently, e5 coming in a week). It is a machinima made with NWN, and looks really good from the first few glimpses. The dvd quality movies wheigh in at around 70 mb each for Windows Media.
I'l update a bit more on how good, funny or over the top the story is later in the summer - after seeing a few more of the episodes, and having had some time to reflect on it.
Most fascinating tidbit? They made/adapted a program to override the textures and add in lip-sync, along the lines of Half Life 2.
"Gad of the Iron Arm, a ruthless Blooded leader, is performing what appears to be a human sacrifice. A force of Black Monks of the Angels, including the novice Jered, are poised to attack and capture him."
There is also an interview from Bioware - and apparently there is a 'real' movie with the same name, an "occult horror" from 1987.