The best bit in this film from legendary pioneer Georges Méliès had nothing to do with the story of Rip Van Winkle. It's when Rip (Méliès himself) sees a gymnast turn into a large snake, then hacks it up into three pieces, each of which continue to writhe about. The pieces then turn into three men, who eventually turn back into the original man when they hop onto one another's backs. That scene has the feel of the fantastical combined with innovative special effects for the period.
Most of the rest of this seemed like a straightforward, theatrical telling of the story. It takes about 10 minutes for Rip to be old and return to his village, and then nothing all that noteworthy happens. I am always in admiration of the sets he constructed, which seem hand-drawn, and yet the cast move about in them, coming down stairs or down trails in the forest. There is an impish quality as well; look for the guy who brings Rip back to his wife sticking the end of the rifle into his mouth at the very end.