I am a friend of GOD! And oh how I love Him and rely upon Him and joy in the time I spend in prayer with Him...
I think people sometimes get confused about "not being of the world." Of course, we must live in the world, but we don't have to do the things that are not godly while we on this earth.
Does that mean we should only associate with others who know God? Of course not! How else will we reach those who don't yet know Him??
As for what movies a person can watch, and what music they can listen to, I think that is something each person is convicted on, on their own, with the Savior.
I don't think having interests outside of "strictly Christian" standards is "bad." I mean, I scrapbook, enjoy photography, camping, loving on my pets, going on walks, spending time with friends and family, and things such as that which don't fit strictly into any "God activity box," (as if there is one), but I believe that a Christian can carry God with them everywhere they go, and more than that, OUGHT TO!!!
However, there is something to be said for what goes in your head, comes out your mouth, and sometimes seeps into your soul. I think we do have to be careful about what we listen to, and how we react to others, because of this, and also because whether or not we always like, we are reflections of God alive in us, to everyone we come across, all the time.
I guess this is a slightly contradicting post. Hmm... It's a fine line between being of the world and living in the world.