This is a movie about how people suck. And, it brings the audience down with it.
The entire film took place on this stage (not unlike a play). The stage was devoid of most props. Houses were delineated with squares painted on the stage. At first this was kind of weird, but most of the scenes were shot close up, so you'd actually forget about it during these times. It was quite engrossing, actually.
The story, which takes place in the 1930s, is about a woman, Grace (played by Nicole Kidman, who did a great job in the starring role) who ends up in this town called Dogville. She is on the run from the mob. The town takes a vote and lets her stay. In order to get people to like her, she helps each person with something (chores, babysitting, etc.) each day. The people end up taking advantage of this, and the story spirals downward from there.
As much as I liked this movie, I hesitate to recommend it only because it was so weird. If you're into experimental film, you'll probably like it. If not, don't bother.