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In April 2006, the Australian Film Commission funded an experimental digital video project by director Christopher Kenworthy. Between June and mid-August 2006 thirty-one clips of UFOs were created. The UFO videos were distributed over the internet via websites and video podcasts. Writers crafted background stories for the sightings, and answered thousands of e-mails using a fictional persona. The process, reactions and responses were recorded for a forthcoming documentary.
The project was hugely successful, being viewed by many millions of people. Very few people suspected that the clips were manufactured. Gradually, the level of plausibility was reduced, but only when the last two clips were uploaded did a large number of people get suspicious. It's also worth noting that two of the UFO clips we distributed were quite genuine - and no researcher was able to pick which two they were.
Originally posted by Tiloke
Im pretty sure this was covered a while ago. The general thought was that its a fake. Like most fakes , this ones undoing is the camera movement . Most hoaxers dont understand that is takes expensive and complicated equipment to match the fake footage with the real. you can see the the light moves with the camera when it pans around.