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The world seems unreal afterwards.
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That's the intended effect and atmosphere. That's why the film opens with the narration
The Indians say that on this river, God never finished his creation. Then the Spaniards descend down the mountain through the clouds as if from another world.
And handheld was really out of necessity. He only had something like 250k DM to shoot on location in the Amazon with a fairly large cast.
And to Steve's recommendations I would add
Heart Of Glass, Even Dwarfs Started Small &
Nosferatu: The Vampyre.