Haven't seen a post about this in a while w00t!
The hype was needed to generate interest in the community to become involved in the project (which it did). No hype = No movie starting in the first place
Like Kaymon said it was a matter of biting off more than we could chew. There hasn't been any game movie produced at that scale (ever) so it was hard to get an idea of how much work was going to be involved. Had I been able to research it I would have given more realistic deadlines and taken more time not to rush anything. On the flip side if I would have dragged it out 6 months or a year and not produced something for the community to look at the movie would have lost interest altogether. I know that a large portion of the actors guild had already started to cancel or were saying it wasn't worth maintaining an account just to film. So it would have been an endless battle for actors.... and of course with every new actor comes the chance that you get someone that wants to have fun ruining the film rather than helping. Lots of fun stuff.
As for the plot of the story as it's been said many times it was work in progress. We had only barely approved the second episode for production. Which was going to be introducing some more characters and begin the first of many assaults by the VS. I had some really dark off the wall plans for the VS that didn't in any way align with the actual PS storyline.