According to ESRB, this game contains: Mild Violence
Parents don't have much to worry about. There aren't any sexual situations, there is no questionable language and no explicit violence.
Fans of the source material should check out the playable DVDs that were recently released for around $15-$20 each. They contain the original games, bonus material, and cut footage, plus they run on any standard DVD player. Out of the three (Dragon's Lair, Dragon's Lair II: Time Warp, and Space Ace) Dragon's lair II: Time Warp is the best title. The animation still holds up quite nicely after all these years. Ah, the memories.
Action fans, stay away. While I love the characters and think the franchise still has promise, the game is a rental at absolute best. It's been outdone by practically every other action/platformer on shelves today, and the license itself isn't enough to justify the purchase price.