Overall, it is pretty interesting. The film is constructed in compelling fashion, although the presentation also gives away the fact that it is indeed not real. Think about it a little. If it was real, would it be released as a horror film? It may be billed as being real, but it is never presented as a documentary. If it is real, why not any more present day interviews with anyone involved? Yes, this is explained, but I am sure there is someone they could have gotten. If it were real, why show archival and recreation footage simultaneously? That seems to be counter-productive.
Now, take away the reality of the situation and watch it as a fictional film. On this level it works well enough. We are drawn in using a variety of tricks, including the personal introduction by Milla Jovovich. While the recreated and archival footage playing at the same time is counterproductive to believing it is actually real, it is presented in an engrossing fashion with split and quad-screen presentation with moving bars, changing the size of the various sections and pulling your eye around the screen. It is a rather interesting way to show the footage and it works.
Bottom line. In the end, the movie itself is decent. The hoax factor does hurt it in the long run, but it is an interesting film that tries something new with the first person/found footage genre that has found a certain level of popularity over the past few years. I cannot say it has much replay value, but there is no denying that with the right state of mind, this could seem to be compelling.