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Were you drunk or high? The thing hanging in the shack was a costume. The retard was wearing the costume when he went after the blind chick. The village was a group of people who were mad at society for various reasons so they went into a controlled wilderness to shun society and start their own hermit community. They used the monster costume to scare the young ones so they wouldn't try to leave the village. It all takes place present day in some forest property that one of the villagers owned.
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I dont know dude. Is this like Mullholland Drive where everyone puts their own spin on it? Maybe that is how you interpreted stuff, but I dont think its really very clear cut.
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It is very clear cut.
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Evidently its not because I didnt see it that way and other posters are agreeing with my interpretation.
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No. We're not agreeing with you. We're having a little fun with you.
Phoenix's explanation is basically right. Go to
The Village on IMDB to read a lot about the film.