i saw LOTR on saturday and yes, it ruled. but i don't think it was the best of the three movies. i can't say for sure, because the film was so entirely different from the book (much moreso than the others) that i think i might be biased against it.
but i think the major differences were simply cut scenes and will be on the DVD, so, that's cool. the lack of the Scouring of the Shire was actually not bad at all, and Jackson managed to iterate the "you can't go home again" theme in Frodo, at least, very well.
things like cutting Gandalf's defeat at the hands of the Witch-King and Saruman's final scene were annoying, but the movie still rolled on. but the removal of the Mouth of Sauron was unconscionable because it utterly reversed the meaning of one of the most dramatic scenes in the entire six-book series. that whole final battle is supposed to be fought in utter despair, a total "we've already lost, the Ring is back in Sauron's hands, so let's just die against these orc blades" attitude...instead, it comes across as a diversionary tactic, like, "let's give frodo as much time as possible! to arms, my friends!" gah.
i was worried that Jackson was going to downplay the Frodo-dies part at the end, but amazingly, he didn't! in fact, with an earlier conversation between Gandalf and Pippin (or was it Merry?) about death and the Grey Ship, he actually emphasized it!
rad.