I saw the piece. I liked it a lot. It is certainly of professional quality
. However, due to the reasons outlined by Mr. DeCandido, it shouldn't be considered in competition with professional films. It is not a professional film, regardless of its technical quality.
This is the inherent problem with creating fan fiction. If the Nebulas wish to had out an award for excellence in this area, I suggest creating a separate category specifically for fan fic.
Hell, then I could play too.
But fan fiction, filmed or otherwise, should not be considered in the same category as pro fiction. Not unless the fans wish to operate under the same rules and restrictions that constrain pro production.