From reading the blog and the various threads the guy has been participating in, it looks like his intent is to make all the material he produces as available as possible to the public, being that the film is in the public domain now.
That means endless remixes, mashups, etc. I bet there's actually a reasonably passable film underneath the wooden acting and poor editing. Drop a bunch of 2k sources in the hands of a board college student in $10,000 in pirated software and we might see some really creative things come out of it. I had been planning a re-dub, re-score, re-edit of the film for quite a while, but never found what I felt was an acceptable copy of source video.
The Something Awful thread where the discovery was first announced has attracted a bunch of attention from people in helpful positions to make sure this gets treated properly, including Mike Nelson himself. Also the woman who played the little girl has been posting on the blog as well.
