Medicore, maybe less so...
This movie is no thriller by far. And I see that, again, I am your first constructive reviewer. Ahem...
The intro where you state the title and that there's mild violence run for too long. It's annoying to sit at the "This movie contains Mild Violence" screen for 10 or something seconds. If we cared about it's content, we'd refer to the rating that is given beside the movie.
Battle scenes are badly constructed. It is waaay too one sided and the enemies are quite dumb in the fact of their moves and the way they just stand there. A sign of extreme laziness is seen when Mario is surrounded by all those enemies, that are hardly animated, and he transforms into this bug thing for no reason and kills them all. Riiight. Slack really.
OK, so you decided to stop being funny, something that can be argued both ways. I'm thanking you for ditching the bloody Arnold Shwarterwhatever voice clips. But the movie is still quite dull. I think the whole idea isn't great, or maybe it's the way you made it.
As for the Koopa Asylam, it was as good as pointless to put it in. It wasn't used in the episode and, I guess, will be used in the final episode. It is out of place anyway. The abrupt end isn't good either.
You did decide to change you Mario sprites, something that, though it is unprofessional, was the right choice. The 8-bit Super Mario Bros. Mario sprites didn't fit at all.
There is too much happening that has no reason and is unrealistic. That random ship at the top of the stairs? What the?
All in all, you need to do some thorough research in improving your Flash skills and story-telling as well. It will be hard, but then you will achieve higher awards than Daily 5th.