does anybody knowa what type they used?
Four for four: It's not type. While it would be elitist to presume that what is obvious to me should be obvious to anyone, it still bears saying that it is really, really obvious that the sign painter improvised this by hand. To me.
The rounded "movies!" apparently added later is probably based on a typeface, but I wouldn't expend much effort trying to identify it without a clear indication that it's the focus of the inquiry.
Well, but isn’t it a beautiful example of sign painting?
I can help with the first three issues:

Welcome to Typophile, Paul!
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It is quite a nice example of sign painting. The argument that technically any shape could be a typeface isn't very convincing here because you can see in the giant picture how heavily the painter relied on the bricks for construction guides.
I should have said "much more effort" because I was curious enough to do some looking but I didn't find a match. It's not VAG Rounded because it has some thick-and-thin especially in the diagonals. It looks a lot like a rounded version of Franklin Gothic (with an upside-down W for the M), but if such a font exists I don't know where to find it.
Well, if exact shapes aren’t a must, I think a gothic with a fairly extensive set of widths, such as Berlow’s Rhode (http://new.myfonts.com/fonts/fontbureau/rhode/) could be used to recreate the overall feeling of the piece.
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