Executive Meddling: One likely reason for the film's extreme critical failure. According to star Shannyn Sossamon, the decision to make the movie PG-13 was made at the last minute, after principal photography, and against the wishes of director Eric Valette. Allegedly, Valette was upset that Sossamon attended a screening of the theatrical version before getting a chance to see his version. This Director's Cut has never been released, nor have any of the scenes from it been shown.
For his part, screenwriter Andrew Klavan says he is disappointed with the finished film as well, saying no one working on the film could agree on what it should be: “Each group - writer, director, actors, producer - had a different vision of the film and while any one of them might have worked, they pulled in different directions.”
Genre-Killer: This movie marked the end of the trend of J-horror remakes. Ironically, the movie made $27 million domestically, which is more than other Asian Horror remakes like Shutter ($26 mil), Dark Water ($25 mil), and Pulse ($20 mil). It made $46 million worldwide and cost $20 million to make, so there's a decent chance it turned a profit. Part of this was due to overexposure (this was one of four major American remakes of Asian horror films in 2008) and the rise of Paranormal Activity and its found-footage ilk as the new standard of mainstream horror the next year.