I don't know that the movie itself is so terrible, but Prince's "acting" is so painful to watch as to be almost comical, IMHO. Other performers were actually quite good in the cinematic medium - Apollonia, most of the Revolution (Wendy and Lisa come off particularly believable), but the man who steals the show has got to be Morris Day (along with his over the top valet, Jerome). Why that man never got more screen time in later years is a mystery to me - in my opinion, his scenes are the only ones with dialogue worth watching.
However, that's not to say that Prince's innate musical genius doesn't come through in the performance segments. Someone else posted that it's great to watch it on DVD and select up through the chapters to watch the performance parts exclusively - I'd have to agree.
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