Yes, a very good film, based on Isak Dinesen's short story of the same title.
I think the story has a lot to do with the ways art intervenes in our lives, and isn't really any sort of invective against religion [i]per se[i/]. Babette, the French cook, is first and foremost an artist; the stern religious community, in which she is an outsider, experiences a transcendant evening through her culinary innovations, something their religion alone hasn't done for them. Their "pious ecclesiastic party or sect" fails to keep petty feuds and friction from festering over the years, but it isn't, I think, the cause of those feuds and frictions.
So, I really don't think either the story or the film is a refutation of religion. More about the mediation of art in the religious experience, the convergence or conflation of the two, and the ways they create meaning in our lives. Something along those lines.
Of what happened later in the evening nothing definite can here be stated. None of the guests later on had any clear remembrance of it. They only knew that the rooms had been filled with a heavenly light, as if a number of small halos had blended into one glorious radiance. Taciturn old people received the gifts of tongues; ears that for years had been almost deaf were open to it. Time itself had merged into eternity. Long after midnight the windows of the house shone like gold, and golden song flowed out into the winter air.The two old women who had once slandered each other now in their hearts went back a long way, past the evil period in which they had been struck, to those days of their early girlhood when together they had been preparing for confirmation and had in hand had filled the roads round Berlavaag with singing. A Brother in the congregation gave another a knock in the ribs, like a rough caress between boys, and cried out: "You cheated me on that timber, you old scoundral!" The Brother thus addressed almost collapsed in a heavenly burst of laughter, but tears ran from his eyes. "Yes, I did so, beloved Brother," he answered. "I did so." Skipper Halvorsen and Madam Oppegaarden suddenly found themselves close together in a corner and gave one another that long, long kiss, for which the secret uncertain love affair of their youth had never left them time.
Wonderful stuff.
Dedalus