No, but they made people think it was. They even paid the actors to lay low after the film came out, people thought they had died.

It paved the way for other reality horror stuff, the only one off the top of my head is Blair Witch Project.

I really dislike the animal violence in that movie. I think the version I have has them cutting up a turtle as well.

If you're interested just do a search, there has been TONS of stuff written about that movie.