I hate movies like this because the germ of a good idea is there and you can see some talent in front of and behind the camera, but the final product is so far off base that it makes me really irritated.
I think the actors were probably good, although it seems they were allowed to improvise too much. A stronger script would have been very beneficial here. As someone else noted, their characters were amazingly shallow. You could take any two of them and swap the actors portraying them and you wouldn't have been able to tell. And all they talk about is drugs. This reveals little about their characters and gets boring after a few minutes, but it just doesn't stop.
Other problems? It takes too long to get to the meat of the story, i.e., getting the kids inside the asylum. We get long, drawn out explanations by a detective and a nurse and the kids themselves filling in the exposition, only none of them can muster up enough enthusiasm to tell the tale without taking mini-breaks for smoking, typing or horseplay. If they don't care about the legend of Lizzie, why should we?
When the kids finally do realize that Lizzie is still in the asylum, they have moments of panic, then they revert back to their druggy horseplay, then another panic, then horseplay, then panic again. It seems to me that if I knew a psycho was running around loose trying to kill me, I would go to and remain on Red Alert and not calm back down like nothing had happened.
The editing was awful. There was no artistic buildup of suspense, the lack of sound in some security camera shots but admitted in others was jarring. I got confused several times about who was holding the camcorder and in fact, how many camcorders there actually were. For a film that claimed to be a real documentary, the use of scary music and hard rock was out of place. The movie didn't know if it was pretending to be a documentary or a real movie.
The good things: while I think the director tipped his hand by showing us LIzzie's scarred face near the beginning, her determined running style was truly frightening. Whenever she ran through a shot, I usually felt a chill. The shot of her face in the window being lit by the flashlight was a good one, too. But I would have given her a weapon. Strangling kids isn't that scary. I liked the idea of her sucking out Barry's eyeball, but if you'd included in the legend that Lizzie carried a sharped spoon for scooping out eyes, it would have strengthened her fear factor. The revelation by Drako (it's not really a twist) at the end was good, but didn't have the umph that it required. And could we have heard some screams as the fire spread and the door was held shut?
I applaud the production of indie films, but this one had such potential and just missed its target. Pity.