*MILD SPOILERS*
I had high hopes for this movie, as I was a big fan of The Blair Witch Project. I think the "found footage" conceit is really effective for low-budget filmmakers. It was somewhat disappointing though. My overall impression is that the movie could have been outstanding, but the ending didn't deliver.
The movie was set up nicely. Kind of slow if you're the kind of person that always thinks non-action movies are slow. I rather like a slow build though. Performances were good, and very naturalistic. The relationship was believable, although I kept hoping the hottie would throw out her douchebag boyfriend. (On a side note, the girl was so attractive that it was almost distracting.)
The first hour was creepy and uncomfortable. This director obviously had a plan to just keep you on the edge of your seat the whole time. I liked how whenever they went to bed it felt like "go time" and you waited for what was going to happen. The initial incidents built nicely, although the Ouija board scene was kind of lame. The claustrophobic effect of shooting entirely in the house really made you feel connected to the characters.
Really, the thing that ruined it for me was the ending. I can go with a slow build and soak up the atmosphere, and spend an hour plus getting gradually more creeped out - as long as it delivers in the end. And while the last minute was scary, it just did not feel BIG enough to pay off all that had been leading up to it. I really thought that the movie needed to deliver on the description Katie made early in the film of the dark figure standing on the edge of her bed. I didn't need to see an elaborate VFX finale, but I needed to see...something. Something more weighty.
All that said, I really admire the director. For seven days and $11,000 shooting in his own house, he kicked ass. It's not every day that you can make a 10,000x return on your investment. And it's hard to make a good movie at any price.
Epilogue: For anyone debating whether to go or not...GO. This movie will lose a lot of its effectiveness in an empty theater or at home on DVD. Some movies just work better with a crowd, and this is one.