I believe this was the first major winner of a fan film contest on either iFilm or AtomFilms. These were the early internet predecessors that ruled prior to YouTube. They were depositories of commercials, short films, and other amateur work that had a difficult time making it to the big screen. I think Lucas somehow got involved (maybe retroactively).
Mostly they were focused as outlets for young budding filmmakers or independent/art filmmakers; people with professional ambitions whether in film, media, or the art world (they didn't fully embrace the anybody-at-home idea). So the fan film contests were a major icebreaker headed down that path.
I've always loved it.