In the book he basically let Frodo and Sam go without trying to take the ring to Gondor. The slightly corrupted version in the movie was a plot device used to delay Frodo and Sam to create a climax at the end of The Two Towers since the battle with Shelob was moved to the third movie.
Hardcore fans didn't like it because it minimized the contrast between Faramir and Boromir and paints Faramir out to be somewhat of a bad guy. The movie writers felt like to not do it the way they did drastically cheapens the ring's corrupting powers. Fans did feel like the extended version, where a lot of the reasoning for Faramir's actions were portrayed as a result of Denethor's treatment of him, painted him in a better light.
Personally I think they did a great job of keeping to the canon as much as possible but making the right minor changes when it made a little more sense to.
Faramir - Bookamir - was my favourite LOTR character, but the hardcore fans were completely OTT in their condemnation of Filmamir.
Tolkien's perfect man, who was in no way tempted by the ring, worked in the book but wouldn't have worked on screen. For starters, a Faramir who was never tempted would have undermined the character of Aragorn, who was. The film makers were right.
Also, for a touch of the soap opera, it worked to have Faramir trying to do something to please his mad father, who had always favoured his elder son.
Faramir was never a bad guy, just one under pressure and under-appreciated. The fact that he finally resisted the temptation at great personal risk to himself, made him as great a hero as anyone else in the movie.