Can't remember the story for the life of me, and I've seen it 3 or 4 times. But who cares! It's an international fighting tournament with the some of the most over the top racial stereotypes that it ends up being a live action video game.
The Spanish 'Matador', the Japanese Sumo, the Brazilian Capoeira guy, the red-headed pasty Scot wearing a kilt. It's got it all and I love it,
As a bonus, the sumo guy kind of resembles Stephen Fry, and the end boss fight is against the same guy who played Attila from AWOL/Lionheart, who I've always thought looked like a video game boss too.
Ha! I google image search for Atilla as I'm typing and couldn't get a more perfect picture (well almost, the names are on the wrong side)
The only decent YT link I could find for The Quest is ten minutes long, but you owe it to yourself to check out SumoFry, who first pops up around 0:53 (and then fairly often throughout), and a few seconds later the Matador and his ridiculous fighting stance - it's got videogame written all over it.
http://www.youtube.com/watch?v=WajUTt8466Y