This local theatre is definitely the best theatre in Palo Alto. Avoid the souless, mega mall feel of the other closest movie theatres and go to the Aquarius to see the most interesting recently released independent films. It only shows two films at a time, and the runs are fairly short. It's very small and for opening nights of some hyped films (e.g., Sideways, etc), you have to get there early to get in line so you're not sitting in the back corner, or so you can even get tickets. They also have great concessions, including cookies and hot chocolate. Just saw the Aristocrats and the manager introduced the film with a short speech (and warning about the vulgarity of the movie) - it was a great communal feeling that so many movie theatres lack.