Since this thread is already overwhelmingly positive, I will just point out
the bad. Please note that I am a huge fan of Tolkien and I spent most last might and this morning reading again, before.
THE NAZGUL: They were good, save for one thing which is very important:
They are supposed radiate horror. When a Nazgul is within a several yards, you
know. When the hobbits were hidding in those tree roots, they did not seem to be terrified by the thing. They were scared, yes, but like Aragorn said, not nearly enough. They were fighting them too easily at Weathertop and afterward. I guess my point is, from the book,
The mere proximity of these things chills your blood almost to the point of being paralysed. At least that was my perception of them. In conclusion, I felt
the Nazgul were trivialized.
CARRHADRAS: This is a nitpick, but I did not like Saruman's involvement at all. This is akin to C3P0 being built by Vador. It shrinks MiddleEarth, because it makes it seem as if everything revolves around the ring. Carradhras is evil period.
It is very important to understand that there are many evil things in Middle Earth with an agenda of their own, that have little to do with Sauron or Saruman. The Balrog was certainly one of them.
MYTHOLOGY: I am sorry to say that I did not really get a good sense of that. The fellowship must have told a story around a fire at night like 10 times in the first book. A single scene like that, with some legend would have been enough.
At lot of the wonder of the book come from the hobbits experiencing the stuff of legends. I didn't get that here
ELVES: Elves are not common place on Middle Earth. Most hobbits probably have never seen an elf. Not that they care to anyway...

. What I am trying to say is that
Elves are a big deal. There is greatness about them. I didn't get that from the movie.
NARSIL: Again, this relates to the mythology stuff. The significance of the sword was barely mentioned. We see that it is important to Aragorn, but that's it.
ARAGORN: Nowhere was it said that Sauron would shit in his pants right now if he learnt that the Heir of Isildur was alive.
The importance of Aragorn was very understated, along with his age (the guy like 80 years old) and his knowledge and experience of the wild. I am pissed about this because he is my second favorite character, next to Faramir (the two are quite similar actually, right proportions of wisdom and valor on the battle field).
TIMELINE: My friend was surprised when I told her that the story is supposed to span over several months. AT the end of the movie, when Frodo and Sam are looking at what seems to be Mordor, it doesn't seem that far away from where they came from.
There are of course many other ommisions and changes, but I have no problem with most of them - for example, I never really cared for the whole Lothlorien thing in the book the the botched version in the movie did not bother me.
Overall, I am sure non-fans will love it and it will do well. Don't get me wrong, it was great. I just wish there was less action (the whole movie felt very fast despite tis lenght), and more of the little things that make Middle Earth so dear to us.
That said, let the wait for the Two Towers begin! I can only imagine what PJ is gonna do with TreeBeard, the Battle of Helm's Deep, the Entmoot, Rohan (he will probably depart from the book by making Aragorn fall for Eowyn) and on Frodo's side, Emil Muyin (sp?), Faramir (probably my favorite character), Minas Morgul, Shelob etc... Lets not even talk about the Battle of the Pelennor Fields in the Return of the King...
In the mean time, I am going back!
[EDIT] expanded a little more...
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Holadem