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The Wizard of Oz is often ranked on best-movie lists in critics' and public polls. It is the source of many quotes referenced in modern popular culture. It was directed primarily by Victor Fleming (who left production to take over direction on the troubled Gone with the Wind production).
The Wizard of Oz was filmed that way to give it the Over the Rainbow effect. The Black and White parts were actually filmed on Sepia Tone film, It has a more brownish tint to it. Which if you have the DVD you will see the true color of the Sepia Tone. The color parts of the movie were filmed on 3 strip Technicolor film. It was extremely expensive back then but they decided to do it right. The Wizard Of Oz was NOT the first color movie, there were quite a few others before. Where the black and white turns to color those few frames on the film were hand painted to give the transition a smooth effect (where Dorothy is looking out of the house door).