When I approached doing my own version of the prequels, I tried to think of myself (hypothetically) as Lucas' friend and producer and we used a lot of his ideas, but I steer him in better directions. I had always planned on making an illustrated PT, but I just don't have the time to devote to it. Maybe some day, but I'll share my ideas (some Sanctuary people are going to recognize this---or maybe not).
I tentatively call Episode I "The Legacy of Skywalker"
First, some backstory is in order (this worked for the OOT, it should work for this, too). 500 years ago, Yoda and an ancestor of Skywalker fought a powerful dark side entity (Why use this concept? Because I'm inspired by the dark shrieks and shadowy things that come out of the Emperor when he's destroyed in ROTJ--what IS that?), and imprisoned it in a 'bunker' on Dagobah (the explanation for the structure that we see there and why it is a 'domain of evil'). Palpatine, a young, meek explorer 500 years later discovers the 'bunker' and unleashes the evil (after raging in there over the last few centuries).
It possesses him (In early script developments Lucas had written a character that was an explorer/archealogist/scientist type person). Using Palpatine's body, the evil entity plotted the destruction of the Jedi. I know some people don't like the possession aspect, but bear with me. We also could have a prophecy at this point, or just a simple declaration by Skywalker, that if the evil were to ever be released, that Skywalker will return to battle it. In my backstory (which isn't too far off from ideas in Lucas' early scripts) Skywalker takes up his family and vanishes from the public (he settles on Tatooine).
Other changes. The Jedi are a looser organization (which a lot of OOT fans seem to agree on) and they do not answer to anyone, but respect the Republic since it has always been a champion of good, etc. At this point in the story, though, no new Jedi have emerged, which worries the Jedi. Obi-Wan has a student, who is believed to be the last known Jedi aspirant. We'll call him "Darth Vader."

We open with the Republic ship returning to Alderaan. They discover the world is surrounded by Mandalores (and it’s NOT over taxation disputes), a technologically dependent society (I chose the Mandalores, even though not mentioned in the films IS mentioned in the ESB novelisation. It seemed the most logical choice of villains, especially since it claims the Jedi fought them). They are preparing to invade the planet with their vast armies of robots (robots which look more like IG-88 than the droids in TPM). The invasion fleet is led by a Sith Lord (who I'll just call Count Sandage, borrowing a name from an early Star Wars script), and a battle-hardened Mandalorian General named Fett (I know how it sounds right now, but again, bear with me). Obi-Wan and Vader sense the Sith on board, and the Sith senses them as well. He orders the ship to be destroyed, and they're damaged. The ship, pursued by Mandalorian fighters, crash lands on Alderaan, thus beginning the invasion.
Meanwhile, (and additional background notes: In the early scripts, Lucas had a world that was advanced in sciences, mainly biological advancements and genetics, including cloning. This is why the Mandalores want to invade Alderaan. Mandalores have become so dependent on their technology, that they have allowed their human population to lapse, and have been without a human army for generations. With the cloning technology, they plan to build a vast army to replace or enhance their droid armies.) Anyway, the Queen (yes, I’m keeping the concept, but with a better explanation [more backstory]-à) Like I said, Alderaan was a master of sciences. A hundred years ago or so, needing a labor force to mine out their energy globes (yes, keeping that concept, too), they created the Gungans (yep, keeping them, too, but they have a better design. see below). Alderaan was ruled by a wise and Beautiful Queen, Amidala. She took pity on the Gungans and ordered their release. Rather than integrate into Alderaan society, the Gungans moved into the swamps. Though they despise the Alderaans, they always held the Queen in high reverence (this is inspired by the TPM Gungans’ “sacred place”).
Anyway, the beloved Queen Amidala died, and in their grief, the Alderaans decided to clone the Queen so that they may always have her wise rule. Of course, this upset the Organa family who would’ve been the ones to rule if she were not the queen. In tribute to them, they were made the senatorial representatives of Alderaan. So, the Queen was cloned again and again, the Amidala of Episode I would be the sixth incarnation, and not quite ready to lead as she needs to mature. In her stead, a council has been appointed. However, the council is corrupt and weak, and against her wishes, they conceded to the Mandalores demands, allowing them to occupy the planet. (As a side note, the Galactic Republic has deemed that cloning is an abomination and abolished it, so they believe the Queens are just descendents).
Meanwhile, with the senator in tow, the Jedi fight off droids, but are soon outnumbered. They flee into the swamps. The Gungans, who don’t look like the ones in TPM, are more frog-like with flat, broad faces and frog-like eyes. They are amphibian, but big and muscular. With their most capable warrior leading them (We’ll call him Jarjar for now), they destroy the pursuing droids and save the Jedi and Senator. The Gungans think the Alderaans are trying to destroy them, so they bring them as prisoners to their leaders. (Vader wants to kill the Gungans and escape, but Obi-Wan orders him to stand down and do as they say). Bail, who has a prejudice against the Gungans doesn’t want to go, but Obi-Wan is his protector and insists they have no other choice.
They are brought before the leader of the Gungans, and in a trick to get the Gungans and Alderaans to work together, Obi-Wan leaves Bail in their protective custody while the Jedi try to get to a ship and get help from the Republic. Bail, however, orders Obi-Wan to rescue the Queen. That she can not fall into the hands of the Mandalores. Obi-Wan reluctantly agrees.
In exchange for Bail, Obi-Wan takes Jarjar to bring them to the main city of Alderaan. Jarjar is reluctant, because he has a distaste for Jedi and the Force, but he agrees. Jarjar, a CAPABLE navigator and pilot, takes a mini-sub through the “Corridor” a dangerous, monster-riddled chasm that leads directly to the main city (we can use Theed for now).
The Sith Lord gloats over the captured Queen, and reveals to her that the Mandalores know about the illegal cloning they’ve been doing. The Sith Lord tells her they will locate the hidden labs and revitalize their culture and expand their empire. The Queen is defiant and will not cooperate. (Sidenote: I’m keeping the decoy handmaidens, but there are only two).
Like in TPM, the heroes are attacked by a large fish, but Obi-Wan uses the Force to waken the larger creature to aid them. Soon after, they are attacked by a droid sub, but after some fancy maneuvering in a energy globe mine, they destroy the droid sub with one of the energy globes. They surface in Theed, and make their way to find the Queen.
Meanwhile, The Count orders the cloning technology and the Queen to be sent back to Mandalore.
Between the Jedi and the capable Jarjar, they save Amidala. Obi-Wan explains that he is under orders to take her back to Coruscant for protection and seek aid from the Republic. Panaka and Bibble remain behind to start a resistance. Amidala would rather stay and help her people, but sees the wisdom in going to the Republic.
The Count senses the presence of the Jedi and goes to face them.
Suddenly, they’re attacked by droids and Vader and Obi-Wan are cut off from each other. While Vader fights off the numerous droids, he yells to Obi-Wan, telling him to get out of here with the Queen. As the Queen enters the ship, she’s greeted by her protocol droid who is shot down by a stray shot. The ship takes off, leaving Vader and a handmaiden behind. They’re pursued by droid fighters, fired upon by the main Mandalore command ship and damaged, but they manage to jump into hyperspace, but still pursued by the droid fighters.
Meanwhile, the Count arrives and battles Vader, easily disarming him and overwhelming him with the dark side of the Force. The Count believes the handmaiden to be the Queen and takes her and Vader prisoner.
They arrive at Tatooine, the ship takes heavy damage and the pilot is mortally wounded, but just as they think they’re done for, a custom ships arrives and after fancy evasive maneuvers, blows the droid fighters away. The pilot offers to help fix their ship and guides them down to Tatooine. They emergency land in a remote area, but are not far from the Lars homestead. The Queen’s pilot dies. They exit the ship and Amidala berates the young pilot for his maneuvers that could have endangered them. Anakin takes off his helmet and introduces himself as “Anakin Lars” (Trust me on this). Obi-Wan senses Anakin’s capacity to use the Force and compliments him.
Amidala is immediately smitten and flustered, but does her best to hide her attraction to him (by continuing to be rude to him). Anakin offers to repair the ship. When they arrive at the homestead, Owen and Cliegg, Anakin’s brother and father approach him, chastising him for disappearing and playing around in his homebuilt starfighter. Shmi (for a lack of a better name) meets the heroes as well. Obi-Wan senses something about her, and it is soon learned that she is a Skywalker. She explains to Obi-Wan that Cliegg didn’t want the boys to know about their heritage, and any mention of their Jedi past was forbidden. Shmi also has a non-functioning lightsaber which belonged to the same Skywalker who helped imprison the dark side entity (it is the same lightsaber which Luke has in ANH/ESB). At dinner, Obi-Wan begins to tell Anakin about the Skywalkers and how they saved the galaxy from the ulimate evil, and then how they disappeared, and Anakin puts it together. He realizes he is a Skywalker, destined to be a Jedi Knight. Cliegg and Owen argue against Anakin becoming a Jedi. The matter seems to be decided. Obi-Wan and Anakin are disappointed. That night, Shmi gives Anakin the lightsaber and tells him to embrace his destiny. Before he leaves her, he tells her and Owen who is nearby, “I am a Skywalker!”
Meanwhile, The Count discovers that the technology needs Amidala’s DNA code to unlock the cloning technology; otherwise it won’t work. The Count calls upon his own apprentice which he calls a “Hound,” (Maul) and sends him with a contingency of Mandalore droids to regain the Queen and destroy Obi-Wan. The Count also tempts Vader, revealing to him the power, which the Dark side can grant him. (There is no ‘Rule of Two’ in this story).
In the morning, as the repairs are underway, Anakin and Amidala are obviously falling in love, which pleases Obi-Wan (none of this ‘forbidden love’ crap here). Anakin has even repaired her protocol droid (C3PO). As the repairs are almost complete, Obi-Wan senses Maul. Obi-Wan goes off to face him, telling Anakin to take off for Coruscant, to protect the Queen. Obi-Wan and Maul face off. It is a furious battle. Meanwhile, droids approach the ship just as repairs are finished. Anakin pulverizes the droids with the main gun, and then takes off. Using the guns, Anakin fends off Maul. Obi-Wan leaps on board the Queen’s ship and they blast off for Coruscant.
On Coruscant, Obi-Wan wants to take Anakin to Yoda to train, but Mace Windu (the protector of Coruscant--???) tells Obi-Wan that Yoda has vanished. Obi-Wan would rather that Yoda trained Anakin, but takes it upon himself to do it. Mace comments about the emergence of the Sith and many have died at their hands. (The Jedi don’t have a ‘temple’ on Coruscant. There are no midichlorians. The Force is as it was in the OOT. Yoda is not located on Coruscant, either.) Obi-Wan also expresses concern for Vader, sensing that he is in the hands of the Sith, and he must rescue him.
Meanwhile, I’ve expanded the role of Panaka and Bail. Back on Alderaan, Bail has made a truce with the Gungans in an effort to fight off the Mandalores. They join up with Panaka and begin a guerrilla warfare on the occupiers.
The Count must leave, but leaves Maul in charge.
Back on Coruscant, Amidala meets with Palpatine (whose already Chancellor, and not from Alderaan). Using his Dark side powers, he puts her in a trance and takes a sample of her blood (if not a trance, he hands her something that “accidently” cuts her hand). When he takes her out of the trance, he makes a deal with her, that if he gets her a force strong enough to repel the Mandalores, that Alderaan agree to share all of its science technology with the Republic. Amidala is hesistant, but wants her planet to be saved, so she agrees.
Soon, Palpatine informs Amidala that he has found several worlds who will rally to Amidala’s aid. She notices that they are the unseemly of the Republic, races of questionable ethical backgrounds. She agrees anyway, and they launch for Alderaan.
On board the ship, Anakin has a plan to save Vader and the Handmaiden.
Meanwhile, things are not going well for Bail, Gungans and the Alderaans. The Mandalore droids are too great in number, wearing them down, despite tactics of blowing up buildings to collapse on tanks & robots, etc.
The Queen’s ship arrives at Alderaan. The Mandalores, of course, detect them. They capture the ship with a tractor beam and pull it on board. The ship is searched, but they can’t find the crew. Through a secret hatch, Obi-Wan, Anakin, et al sneak onboard. They make their way to the communications room to emit a pulse to knock out all the droids. Maul, now on board, has sensed Obi-Wan and Anakin. He goes down to confront him. While Obi-Wan holds off Maul, he orders the rest to deal with the droids.
Things are getting worse for the Alderaans and Gungans. They’re cornered and the droids are converging on them. Their death seems certain.
On the Mandalore command ship, the heroes are pursued by droids. They find Vader and the Handmaiden, releasing them. With their help, they make it to the comm room. Anakin utilizing the same type of technology they use on droids in the OOT to deactivate them, plugs it into the main computer. As the droids burn through the blast door of the room. (During this sequence, Vader calls upon the dark side to destroy several droids).
It seems hopeless for the Alderaans. Bail orders everyone to surrender. The droids surround them.
Obi-Wan battles with Maul, and finally, after a spectacular battle, kills him.
Just as the door to the comm room blows inward and the laser fire zaps around them, Anakin hits the button and the signal knocks out all of the droids on the command ship and on the planet below them. Bail and crew celebrate, hugging each other, forgetting they were once at odds with each other.
As the celebrations progress. Amidala is concerned about the deal she made with Palpatine. Though Bail is upset with the deal, he commends Amidala on getting aid when they needed it most. Obi-Wan looks for Vader, but can not find him.
Vader, meanwhile has hijacked a ship and flies towards a Mandalore vessel. He lands on board and kneels before the Count. "I wish to learn the way of the Sith," he says.
It still needs a lot of work and thinking, but that's about what I have for now.