Thanks to everyone for their replies (and to sonnyboo for sorting out the link for me!).
I am trying to set one up in my home town, which is Wolverhampton in England, although I don't currently live there. I'm trying to get some friends to get involved who live there and meet up when I go back to visit this Xmas.
I understand about the possible loss of interest over time but that all comes down to good leadership and organisation.
What needs to be done first is try to find people who have an interest in filming, directing, acting and writing and try to assemble a group that will form a film project plan and then get the basics done, i.e. writing a short script, finding the setting, getting actors and props, etc.
Basically, as we can see on YT and loads of other video sites, people like doing this even though their work will probably only be viewed by a few people, so there is the potential to get started already.
I would like to get a team together as soon as possible, tell them the criteria needed to make it work and then pass over the work to them.
It can, of course, work pretty much anywhere as it can be done with a camcorder or digital camera and a computer to edit and produce it.
If the various teams can get together a collection of 5 or 10 minute shorts, they would need to find a place for the screening. It doesn't need to be a cinema, it could even be done in bar.
The idea is that if you can get your features shown to people and just 1 or 2 people say they think it's great what they've done, this can give the incentive to go out and do more.
The reason I posted it here is that I would happily give the whole concept to anyone who wanted to set up their own version. The only thing I would aim to get from this is the knowledge that I've helped to give people their own opportunities to create something that could earn them a little money but mostly so that they feel motivated to do something that they enjoy doing and would like to spend their time on.
It's part of my philosophy to improve the quality of people's lives without needing much to begin with.