There's three stories here.
The first story is that of Will Navidson, a photojournalist who agrees to stay home from work for awhile in order to try to save his marriage. Of course, being a photojournalist, he sets up video cameras in every room of a new home so that he can make a documentary of the process of moving. Over the next couple of months, he begins to realize the home is slightly bigger inside than outside. Then doors and hallways begin to appear where they weren't before and where it's impossible for them to be. One door leads into a dark labyrinth, where you can travel for days without finding an end. At that point, the documentary changes focus to the exploration of the hallway.
Will Navidson's story is told by Zampano, an academic who's spent years analyzing the documentary, any interviews he can find of anyone who set foot in the home, etc. Everything is analyzed, right down to the camera angles, lighting and length of the shots. Zampano dies before publishing his work - and his notes are found by Johnny Truant.
Johnny, after finding the notes, begins to read through them, adding his own notes and growing more incoherent and irrational as the book progresses. Most of his notes are of the type "This reminds me of the time that ..." etc.
Zampano's part is rather dry. It's almost a satire of academia, with hundreds of footnotes, and copious citations of the (fake) resources he obtained info from. Some of the footnotes drag on for pages and are incredibly boring. Others are interesting. But it seemed like just when I was about to give up and skip some part of a footnote - he'd come up with something that made it worth it. (Except for the lists -- I'll admit to just skimming those!)
Will Navidson's story was rather creepy - definitely a Gothic horror story. However, just when I started getting drawn into the horror part of the story, Zampano would take a long digression into some trivial bit of academia. I liked the book as a whole, but I think Navidson's story might have been better served if Zampano's and Johnny Truant's bits of the story weren't in there, or maybe a bit less obtrusive.
Part of the point behind this story is just reading about the house - even if you've never been there to be directly affected by it's evil - negatively affects you.
I think what makes the book work (at least for me) is that it's an analysis of something that was originally in a visual medium. Some of the strange formatting mimics what you'd see if you were watching it in a television screen - things that move further down the page as the action gets closer to the camera or scenes where there's only a word or a couple of letters per page when a movie would be showing things in slow motion. Also, both editors being absolutely crazy helps explain away the weird formatting.
In my opinion (and opinions are going to differ wildly on this book!) it's totally worth reading. However, I NEVER, EVER, EVER want to read anything remotely similar again. Once was enough. It was good, but exhausting to read, both physically and mentally.