We are Catholic and I was looking for a good Nativity DVD for our 4 kiddos, ages 6 and under. This DVD is not Catholic, per se, but as a Catholic I did not see anything in it that went against Church teaching (important to us).
It really is the best animated Nativity DVD I've seen for kids... geared to children and really held their attention. We watched it twice during Advent and the Christmas season, and even our 4 year old, who normally doesn't dig religious cartoons, enjoyed it and asked for it again.
One small quibble: If I could take off half a star I would, because I have a couple of these Greatest Heroes and Legends DVDs and the director always feels the need to include this cartoon boy character singing a cheesy (and long!) song; it is distracting from the story.
But really, for the price (I think we paid around 5 bucks), it's not a huge deal, and overall it's a great re-telling.