Solid start to the series. It has no huge action setpieces or silly gadgets, but instead relies on proper intrigue and simple spy tricks (the hair across the cupboard doors, etc), which make it compelling and fun. In certain genre-staple elements, you can see the fundamentals that have ensured the endurance of the series until today. The film is, however, less polished than subsequent instalments, and I'm not a huge fan of Andress...or of Connery's singing :P
It also gets a bit silly when Bond finally meets up with No, but the production design for his lair is awesome, and Joseph Wiseman is good if you can get past the yellowface.
No giant squid?! Pfft!