Filmed on a very low budget The Blair Witch Project (1999, R) does a superb job of creating an eerie atmosphere without expensive special effects. The viewer is led to believe that the movie is actually footage from a documentary that three film students created when they ventured into the Maryland woods to document the local Blair Witch legend. This home-video quality film is all that was recovered. After watching the film read this interesting article, "The Blair Witch Project at 20: Why it can't be replicated."
The movie is available on dvd or as a part of a Halloween binge box called "The Footage Found Collection" which also includes Paranormal Activity, Cloverfield, V/H/S, Creep, The Visit, and As Above, So Below.