I have seen this movie only recently (2005) and it's easily one of the better foreign films I have seen. Actually, it's probably just about one of the best films I had ever seen.
The characters really make this movie come alive with each of their compelling personalities shining though in the backdrop of oppressive conditions and constant violence. One thing which clearly comes to mind is "Lil' Dice's" ear to ear smile - so vivid and yet so ironic since he personifies pure evil.
The City of God is a world you don't want to visit, it won't be featured on a post card, and it's said to be the city ignored by god himself. This movie makes you feel uncomfortable, puts you on the edge of your seat -- you are right into the middle of the City and you too are caught up in it's violent temptation. More importantly, it's about the triumph of the human spirit against all odds.
This movie in effect is fast paced and hard to follow (with the added stress of subtitles over Portuguese), but it's worth it; and in fact really adds to the impetuous and impulsive undertones of the movie. In addition, the quintessential Brazilian music blending into the film like a well made Caprahina makes it feel authentic like the Italian music in the God Father.
You see the flaws of these men played out in an almost fatalistic nature -- hated, greed, futility; and in it all we see ourselves, our own flaws, and our own condition.
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