Baghead

There have been way too many attempts in the "realistic horror" genre since Blair Witch convinced people that any random person with a camera equals art (or at least profit). But with similar production values and a bit more scripting, Baghead does a decent job of creating something new.

One couple and one pseudo-couple, starving actors all, go off to a cabin in the woods to write a movie in which they can star to break in to the industry. After one of them has a dream about a mysterious figure in the woods with a brown paper bag over his head, they decide that they've found their plot. But was it really a dream? (cue dramatic music)

The shooting, dialog, and direction all have an extremely realistic style, which accentuates the fact that the characters are all average to the point of being mildly comical. Some might find the pacing a bit slow, but I think it heightens the few startling moments, and in the end it's worth it.