Incubus

When exploring Esperanto recently and seeing how close it is to Spanish, I
was amazed.  When I saw the movie Incubus a couple years back, a movie entirely
in Esperanto, I could not understand a word.  I came to the conclusion that it
was because I'm only a freshman in Spanish I (even though I'm ahead of the
class and my Spanish teacher has approached me about moving up to Spanish II)
and I probably didn't know as much Spanish then as I do now, however, my
Esperanto-speaking friend brought up how horrible their pronunciation is in the
movie.  On the other hand, this is also one of my Japanese-speaking friends who
told me that the pronunciation of dog is "inyu" whereas my dictionary says "inu."
 Is he correct?  If he is, then why is it the most well known Esperanto movie
out there?

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