I remember going to see it at the cinema the night after watching a documentary revealing what a big hoax it all was. That kinda ruined it for me.
However, a few months later I watched it on video at a friend's sleepover. She lived in a cottage in the middle of nowhere. In that environment it was super-scary. It's kind of an "experience" film, I suppose. You have to be completely immersed in it in the right surroundings to truly enjoy it.
I actually do prefer the sequel...
