It's definitely pretty spooky and the 8mm footage is completely awesome. The little kid stuff is the weak side of it, along with other stupid horror movie decisions. I hate the whole "shhh" thing that kids do, is that supposed to scare me? Why are we trying to creep me out with 4ft tall 70lb people still in the horror genre?
It's not a good movie, but if you're a fan of horror movies it's worth checking out. The 8MM scenes alone are worth a download