The Hills Run Red (2009)

A group of college students head out in search of a legendary horror film that vanished years ago along with it's director. Tyler is obsessed with tracking down the scariest film ever made called The Hills Run Red. It's about a serial killer wearing a babydoll face.

The directors daughter Alexa appeared in the film as a young child. Tyler's research leads him to discover that Alexa is now working at a nearby strip club. After helping her kick her drug habit by holing up in a hotel room for a few days, Tyler, his girlfriend, best friend and Alexa head into the woods where the movie was filmed. Alexa has promised to lead Tyler to her father's home in the middle of the woods as she thinks there might be a print of the movie there.

Soon the group is attacked by local rednecks and shortly afterwards discover that the Babyface killer and Alexa's father are still around. The ending is typical and even after the characters are told the basics of what is going on, they still can't put it together.