There was a pretty good made for tv Arabian Nights that came out in 2000.
Also, if you like Ray Harryhausen, check out the old Sinbad movies. They're cheesy, but still fun. I always liked Sinbad and the Eye of the Tiger -- mmmmmm Jane Seymour
The Thief of Baghdad (1946, Technicolor). Great Arabian-themed fantasy film. I see Jonesy mentioned it too, but there's more than one film version. The silent one starring Douglas Fairbanks,Sr. is pretty good, too.
The Golden Voyage of Sinbad. How can you not love an animated ship's figurehead and a sword fight with a multi-armed statue of Kali?
The Wind and the Lion. Sean Connery as an Arabian sheikh is kind of weird, but it's a good movie.
Try "Hidalgo", with Viggo Mortenson(sp?). It's about a horse-racing American in a race across a killing desert. Good movie, with a good dose of the flavor you're looking for.