Pendragon Pictures' new film "H G Wells' War of the Worlds", the first faithful adaptation of the original novel, has been in development for about 5 years. A theatrical release was intended for earlier this year (March, 2005) but this never happened. The DVD was rushed out to coincide with the release of Spielberg's version, which hits theatres June 29.
I liked this film, with certain reservations.
How faithful is the adaptation? It's not quite 100% faithful to Wells' book, but 90 - 95% faithful is good enough for me. At least several scenes were totally new, such as Ogilvy the astronomer's confrontation with a farmer, and the unnamed writer/narrator awkwardly having tea with his cousin. But on the whole, this film follows the book very closely -- certainly much more than the classic 1953 version by George Pal.
Its greatest fault is that it was obviously made on a very cheap budget. The majority of it seems to have been shot blue-screen and composited with digitally rendered backgrounds. This is particularly annoying during most of the interior shots, and scenes of crowded city streets. The overviews of 1898 London look like something from a video game. Numerous scenes in horse-carriages were faked -- I guess they couldn't afford to rent a horse. The only scenes shot for "real" seem to be those in open fields or forests.
But within those budget restrictions, they managed to do quite a lot. Artistically, the film looks right. The Martians and their tripods are quite well done, and very true to Wells' descriptions. I was particularly impressed with the heat ray. Although the Thunder Child sequence, which should have been one of the film's highlights, is very disappointing. It's a great shame that they couldn't afford more actual sets, or better quality animation.
The acting and direction won't win any Oscars. For the most part, they are competent, not bad, but not outstanding. The music is quite good also, though not on a par with any of the major Hollywood composers.
I'm actually glad this didn't get a theatrical release, because the budget limitation would have made it look much worse on a big screen. As it stands, I would rate this similarly to a BBC-TV adaptation of classic literature.
A few nitpicks: Most of the scenes are presented with various colored filters (mostly red). This may have been an artistic choice, but it is used very inconsistently, and seems more like a sloppy job of mastering the DVD. And the writer/narrator's obviously fake moustache mutates from scene to scene.
Bottom line -- Is it worth seeing? If you can look past the technical and budgetary limitations, and get into the story, I think you will enjoy this, especially if you've actually read the original H G Wells novel. If, however, you are easily put off by cheap production values, you'd best pass on this (unless you're a MST3K fan). Be warned, however that the film runs a full 3 hours, so I don't recommend watching it all in one sitting.
BTW: An entirely different version of War of the Worlds (aka "INVASION") came out on DVD the same month that Spielberg's hit the theatres: http://imdb.com/title/tt0449040/. This was also made on a budget, but is updated to the present day like the Spielberg film - but it's much better! And to top it off, Jeff Wayne is making an animated film of his best-selling album from 1978, but that won't be out until 2007.

Getting lost in space frozen for 15 years, that's unlikely. Falling into a star... improbable. Falling into it the day it goes supernova and explodes... ludicrous. Getting rescued by a ship just then... priceless.
No, it's not Zaphod Beeblebrox's Heart of Gold to the rescue. It's also not the Parent of the Year awardees. After sentencing her daughter to two years' solitary confinement on an abandoned spaceship, the mother encourages her to get drunk and wander off alone with the strange man they've picked up. This foreshadows their prowess in hand to hand combat, which makes up most of the film's action. Combat highlights include for example the psycho talking close up face to face with one woman while blindly pointing the gun behind him at the other about six inches away, who obligingly simpers in the line of fire.
In the end, the family of three abandons the metropolis-sized ship they were planning to use to observe the supernova until the last instant because it is too slow to escape the blast wave, instead using the psycho's fighter ship which they've refueled in one minute with 1600 pounds of gas propellant from a 0.7-kiloton missile. You have to love those hard sci-fi statistics!
As long as Hollywood treats writing as an irrelevant frill, they'll continue making movies not fit to run at 3 am on the Sci fi channel.