Just for background: I haven't gotten around to reading the books yet. "The Hobbit" was read to us in 7th Grade, but that was my first exposure to the fantasy realms, so there was a lot that I didn't understand. I got the Lord of the Rings trilogy in the boxed set of 6 for my wedding, so I'll start on The Hobbit, then the trilogy after I finish the fourth Harry Potter book.
[Update] Where IS my head today? I'm spelling everything wrong... agh...
The first hour was slowslowslow. And I was fighting to stay awake for the second half hour so I spaced on most the Arwen stuff. I hear that they beefed up Arwen's part from the novel to give the movie a bigger Estrogen Quotient anyway, so I guess that works out for me =)
Hugo Weaving's Elrond didn't bother me as much as I thought it would. The thing I hated the most about Agent Smith was the sqeaking/whistling noise when he breathed through his partially stuffed nose. And that wasn't the case here. =)
Gandalf bothered me more actually. From what I know, Gandalf is supposed to be a powerful ancient wizard, but in the movie, he gave me the impression of a tired old man that got picked off way too easily. I don't think it was Ian McKellan because he did "ancient and powerful" REALLY WELL as Magneto in X-men.
And I was kinda distracted through the whole thing by The LOVELY Elf Boy (I say "boy" but Legolas was probably thousands of years old). It's funny because I don't think much of Orlando Bloom's everyday look...
I found the Hobbits very annoying because of the CG. The obvious use of body doubles and always having the Hobbits' backs turned. The Frodo and Gandalf in the cart scenes at the beginning were especially annoying. They'd cut from one to the other and I got this general feeling of "dishonesty".