It looks like the servers that used to take your generated movies and mail you a link (which you could then upload to YouTube) have been shut down. With the millions of people creating wacky trailers and hammering their servers, it must have just been too much success for them to handle. I'm in the movies, alright, but only so long as my Xbox hard drive survives.
More seriously, the game is doofy fun. If there's a version for Kinect that fixes some of the technical issues, I'd pick it up.