Is this sentence correct? Is it a fragment?

Question

That my friend told me was the best movie he had ever seen?

Answer 1

I think it's fine. It's a sentence beginning with a noun clause (in this case 'that' is beginning the noun clause and is the subject).

Another way of putting the same sentence could be:

My friend told me that was the best movie he had ever seen.

Answer 2

It doesn't make sense. Is it a response to a question? If it is, you are leaving some words off the beginning of the sentence. Or, is it supposed to be a quote? "That" my friend said, "is the best movie I have ever seen." How about: My friend told me that movie was the best he had ever seen. It is not a fragment, but it does seem to have an extra subject or something.  

Answer 3

With the correct positioning of comma's, then yes.

Answer 4

it will become a complete sentence if properly punctuated :

That, my friend told me, was the best movie he had ever seen.