The most complete account of a Norse, or Norse inspired, funeral comes from Ibn Fadlan's account of the Rus people. We need to keep in mind the usual biases authors always have, and also remember that the funeral practices of a Rus chieftain need not necessarily be the same as funerary practices in Norway or Iceland. However, other archaeological sites have also had evidence of ships being interred, or cremated, on land. An interesting parallel is the famous ship burial of Sutton Hoo, which also features an interred ship alongside fabulous grave goods and animal sacrifices. Many comparisons have been drawn between the material culture at this East Anglia burial and those in Sweden at the same time.
Ibn Fadlan's account has all of the hallmarks that have come to be associated with Viking funerals with one noticeable departure, the boat is burned on land.
The entire process is quite long, taking days, and comes with all of the fanfare that is attributed to Viking funerals. There are animal, and human, sacrifices, lots of drinking, the chieftain is laid on his ship and then the whole lot is burned with a mound being raised over the ashes.
However the ship is not put out to sea. Instead it is dragged ashore and all the riches and grave goods that went with the dead man were put on board and burned with out anything touching the water.
So does the Hollywood version have its basis in reality? Yes. Ship burials are extensively attested in both primary and archaeological sources. However, the trend seems to have been for ships on land, not cremations at sea.