Blair Witch Project
The plot: 3 student film makers go into the woods in search of the legend of the Blair Witch. They were never seen again but a year later their footage was found and put together to form this movie.The good: Well it was made by a group of student film makers who funded it with credit cards and they bulldozed Hollywood so that rocks. In terms of the movie, it's scary and original.
The bad: The footage is from handheld cameras which really annoyed some people as it's jerky. Plus there is none of the high budget effects and action Hollywood delivers.
Conclusion: It's an awesome movie. Turn the lights off, light a few candles and begin exploring the legend.