A. particles = bad

and there were lots and lots of them, its one thing i would see if you can fix before you go to upload to local...
B. disable your divx logo OR you know? just do this:

i. the particles in your video are more than likely due to using a DIVX encoded source for your video footage..
ii. when you use divx for your source it will hard encode the logo into your video (unless its disabled),
so if you cut the divx/xvid out of the equasion you dont even need to worry about disabling the logo so it doesnt get hard encoded into your video O.o killing two birds with one stone O.O (click the pretty huge red words to find out more)
whats the focus of this video?
is it sakura/sasuke? or naruto and random chick i dont know the name of? or all those other random characters in the beginning? i should be able to tell within the first few seconds or so what this video is going to be about... and in :00-:41 i got all sorts of random things... I couldnt find any kind of set up or focus
later in the video: hmmmn now its starting to look more like naruto/sasuke O.o I'm still confused as to who this video is really about... hinata there for a second O.o i like that pretty scene O: but what does it have to do with the video?
watching on 1:22 - reused scene probably could have used something new here
uh lots of action/fighting scenes now... is his deamon thing his dirty little secret now? i think it would work better if it was a girl... :/
2:26 another reused scene :/
2:48 theres that hinata scene i like again, just more of it this time
and more actioney scenes :/
credits: okay weird O.o
other notes:
still at the end of this video i couldnt figure out what Naruto's Dirty Little Secret is?
if this were supposed to be a "fun upbeat fighting video" it could have used alot more fighting scenes and less silly ones O.o and alot more internal sync...
it looks like you started out trying to lyric sync and then just got tired of trying to do that, then just went to random stuff you like watching in other naruto videos...
also watch out for orphan frames... those little blips of the next shot you see that pop up every now and again, those can get really annoying really quick...
what i would suggest is this:
1 find your focus... every good video i have seen has centered around a focus of some kind, it has had a center, something that is consistant through out the entire video.. if Naruto is your focus (as your title suggests) then focus on him, and forget all those other characters... if Naruto/Sasuke is your focus then use only scenes with them in it... adding other things into the mix will only go to lose that focus...
2 practice syncing... with an upbeat song like this you gotta have alot of internal sync (making the visuals in the clip move on the beat) and cutting sync... sometimes it looked like you tried but alot of the times it looked like alot of random clips that you stuffed in there for no reason.. make sure your cuts are on tempo of the song..
3. listen to the song, listen to it alot! it will guide you as to where the cuts should be made, and what clips you should choose... everything from the mood of the song, and the sound of the instruments are guides for you...
good luck i hope this helps