**POSSIBLE SPOILERS**
The biggest part of the movie that doesn't work IS the Wendigo, and when your title character fails, your movie usually isn't far behind it. The filmmakers' interpretation of the Wendigo's form is interesting, and can be properly menacing when filmed correctly - when the fleeing killer sees the Wendigo in a flash in his rear view mirror, for instance - and the tree-form was actually very good. However, as a monster character it never really comes to life. We don't get much of an explanation for its behavior, and what we DO see from it doesn't jibe with either the story told in the movie itself, or any Wendigo lore I've ever read.
I think one of the main reasons that the monster fails is that it isn't given enough to do, in the movie. When you boil this film down to its bones, what you have is a suspense thriller with a little bit of a supernatural element, instead of a movie about a monster.
The cinematography is good, though a little cheesy; the filmmakers use scenery, lighting, and time of day to convey atmosphere and mood rather well. The character of Otis comes across as truly dangerous and unpredictable, making him the real monster in the film. It might have been more effective to explain his behavior as him being possessed by the hungry spirit of the Wendigo, which would also be a more accurate representation of the real legend.
I have heard unconfirmed reports (from a newsgroup) that the reason the Wendigo doesn't do much is that, when the monster suit was built, it wound up so heavy and and uncomfortable (in order to mimic the stance of it standing on cloven hooves, the performer had to walk on his toes) that it was nearly impossible to run, walk, or otherwise perform in it. Thus the many flashes of the creature standing still, and the obvious sped-up footage of it running. I stress that these reports are uncomfirmed.