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These people were city dwellers in the 1800s. They did not react well to advances in technology and general societal progress and thus left the city and retreated to establish a dwelling in the forest. However, the forest was some sort of "wrinkle in time" and time inside of their forest was progressing at a far slower rate than the rest of the world. At the edges of this time vortex, everything was all f'd up and resulted in the creation of monsters and all sorts of weird random occurrences like morphing. Beyond the edge of the vortex forest, time progressed normally and society advanced, so outside the forest was pretty much modern day time. The interaction between when someone exited the vortex and went into the normal time continuum is likely going to be the basis of the sequel and will be a very interesting concept to explore.

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Wow, hmm. We pretty much figured out what this movie was about a little higher up in this post, but you are deffinately close, maybe even right.

My view is that the werewolfs guarded the space/time continuum and there was a big war between the werewolfs and humans, and those were the only surviving humans left.

The blind girls dad wound up killing all of the werewolfs except one (that is what he was showing her in the room they are hanging in), and the last werewolf turned out to be the retard living with them. Killing him opened the rift back up.

I am still open to your interpretation though. What do you think of mine?