Back to LORD OF THE RINGS: THE FELLOWSHIP OF THE RING - I, too, was quite confused the first time I saw it. I knew who Bilbo was because of THE HOBBIT, but, I got really confused when Liv Tyler's Arwen (?) first showed up, also with Stryder's initial appearance, the ring-wraiths confused the hell out of me and I couldn't tell the difference between Merry and Pippin.
That said, I still have not read the books, though they have sat on my shelf for a long time before Peter Jackson even thought of making the films.
And to add insult to injury, I had seen the animated LORD OF THE RINGS and hated it with a passion - I probably still do. . .
But, on second viewing, THE FELLOWSHIP OF THE RING fell into place for me. I know that one really shouldn't HAVE to see a film more than once to understand it, but, with each viewing this series gets richer and more emotionally charged for me. I break out into tears in the first two films with the advanced knowledge of what transpires in the third installment.
It's not even that I'm not a fantasy fan - hell, if you love musicals, you have to be a fan of fantasy - but, I think that Peter Jackson created a world of fantasy in his three films that is a very real, cinematic world, a world that I enjoy spending time in, whether in the theatrical or the extended (NOT director's) cuts.
AND. . .I watched the blu-ray of FELLOWSHIP OF THE RING up until the mid point last night (once the fellowship is formed in Rivendale) and I'm still waiting for the transfer to be lackluster. . .