Uh... Uh... With the emergence of sprite videos, I see something, well bad... Just find a book called "Flash Animation for Teens" and learn how to animate from there.
As far as a proper review goes:
The screen is too small, and whatever you used to convert the file, because I'm assuming you simply converted a windows movie maker video file into a .swf, left a very revealing demo water mark.
There really wasn't any animation, just a collection of pictures that vaguely resembled the process. In fact aside from one sequence, the movie was about the Eds and Sonic talking.
Don't get me started on the story. I found it farfetched, lacking any sort of writing, but loads of character derailment. Why does Tails want to suddenly betray and harm Sonic? Why would Sonic's friends turn on him and team up with the guy whose obviously acting beyond himself? Why the Ed's of all characters?
Before you continue, or rather before you restart this, because it would need to restart, you need to brush up on the basics of storytelling and animation before you attempt to make story based flash here on Newgrounds.
Please consider learning about flash animation from what you know, there are plenty of tutorials out there on Youtube that will teach you how to animate sprites.