I wasn't sure what to expect when I watched this film. I think it was completely misrepresented in its international promotion, as part of the 'Horror After Dark' festival last year. This 2007, and belatedly released, film is filmed in a documentary style about the Palmer family trying to deal with the tragic... loss of their daughter, Alice.
I didn't find the film frightening, but it was very atmospheric. Some scenes were quite foreboding. In retrospect, it is easy to see how this film could have been presented, had it been made in a typical straight forward way. The plot turns are all in keeping with genre expectations, but it was the choice to tell the story in an almost completely strict 'third person objective' view point that really had me engrossed.
The Hollowood remake is set for release next year - you know how they don't like those foreign language films - and expect it to lack any of the honesty and soul of the original. No doubt the remake rights, as is the trend now, were part and parcel with distribution rights. This is the current tactic of the American film industry now - distribution with the condition of remake rights.
That makes for a very sad situation, and if it isn't protectionist, I don't know what is. The only reason to remake this film is to cash in on this year's Paranormal Activity. I would watch that as well, but make sure it is the original cut and not the Spielberg one - it wasn't even his film! As for Lake Mungo - see it if you can. It is a very striking film, full of life for long after the credits have rolled (watch them all by the way) - don't watch any trailers.