Personally I've never liked Blair Witch. I find there is a fundamental flaw in the whole premise and that is if you are really that scared, please, please, ditch the beeping video camera. Apollo 18 is now in cinemas and not doing brilliantly. Cloverfield is OK and Paranormal Activity only works on first viewing. You do not need techniques such as handheld cameras, found documentary footage or real time filmmaking (The Silent House, for example) to create a good horror movie as there are perfectly good horror movies that excel because of the terrifying atmosphere without the use of the one single shot technique or found documentary footage. A good example is The Orphanage which is, in my opinion, the best horror movie of the last decade. The sub genre has never had a huge effect on me. I found Cloverfield to be entertaining but uninvolving and Blair Witch to be slightly dull and full of characters who were deeply annoying.

Theres a really good found footage film called Alien Abduction: The Macpherson Tape (or Incident in Lake County in the US) which can be seen occasionally on the movie channels on sky, it pre-dates Blair Witch by a year and I remember watching it really late at night when I was about 11 and being genuinely freaked out by it. I did watch it again recently and age 23 did see it for what it was (i.e. pretty ropey but in a clever way) so worth checking out if you haven't seen it

Sounds interesting. Although the troll film that I'm most looking forward to at the moment is the adaptation of Terry Pratchett's short story "Troll Bridge". The funding to finish this film was generated through a kickstarter project, and I think it should be pretty cool. (http://www.kickstarter.com/projects/snowgumfilms/terry-pratchetts-troll-bridge)

I really liked this film

It's a literary device too. Bram Stoker's Dracula and Frankenstein are written as diary entries. To give the same feel of reality that found/documentary footage does. Also... look out MASSIVE TROLL!!! Looks like a lot of fun.