The 1985 Hobbit Movie from Russia

http://io9.com/5969220/

Don't think of it as a "movie."  That will only lead to disappointment.

Think of this as a video of a stage performance of The Hobbit.  In fact, the more I look at it, the more convinced I am that this is based directly from a stage performance.

I don't speak Russian, but you don't really need the words.
Here are the scenes:
   2:57 Bilbo meets Gandalf
   6:19 The Dwarves arrive at Bilbo's house
  20:36 Travelling
  23:56 The goblin's cave
  33:45 Gollum
  44:50 Forest with spiders
  49:07 Laketown
  51:26 Approaching the Lonely Mountain
  54:30 Bilbo finds the Arkenstone,  and talks to Smaug
  59:22 Smaug at Laketown
  59:55 Using the Arkenstone to negotiate
1:01:54 The Battle of "Five" Armies (though only three appear in this version)
1:03:01 Thorin's last words
1:05:15 Farewells
1:07:38 Happily ever after

If you were writing a script for a stage performance of The Hobbit - with a community theater or high school  budget - which scenes would you include?  How would you handle the special effects (Smaug, invisibility?)  How would you handle the size differences among the races?