In a run-down VHS rental shop that is struggling for business, owner Elroy Fletcher (Danny Glover) leaves his foster-son Mike (Mos Def) temporarily in charge as he takes a vacation to spy on his rival's DVD-rental place downtown.  Mike's friend Jerry (Jack Black) has recently been electrocuted at a power plant causing his body to be magnetized, and when he stops by the shop he erases all the tapes.
  With angry customers demanding their money back, they only have one option - to recreate the movies themselves.  Will people come back for more "Sweded" movies??

Elroy returns and sees that business is booming, until Sigourney Weaver shows up as a studio boss and files a huge copyright lawsuit against them involving fines totalling millions of dollars and thousands of years in jail. She also confiscates all of the tapes.
  Mike wants to fight for the building, but Elroy tells him that legendary Blues star Fats Waller didn't really grow up there, that he made it all up.  Mike doesn't care too much and wants the town to get together and make their own movie about the life of Fats Waller using made-up stories, hear-say and urban legends.

Everyone is buzzing, and it seems its the first time they've ever seen a camcorder, and the movie is soon finished.  Mike and Jerry break into the DVD place to steal the video projector but are caught by the rival boss and leave empty-handed.
  At the big screening, Elroy realises they'll never make enough to save the building and he knows he will have to take the offer to move to 'the projects'.  Jerry breaks the only tv, but the rival boss shows up with his projector.

As the movie is ending, they open the doors to the shop and outside is a huge crowd enjoying the movie - with one policeman even holding his ribs as he chortles Mary Poppins-style.  These are the guys who thought 'The Avengers' was a good movie.

Its a completely pointless ending as the good guys still need to move, their business is finished, and they're all set for a life in the slammer.