We went and saw the film last night and it is true to the story - it goes on and on just like the book. 3 hours and a numb ass later I was glad that part 1 finally ended.
I've read LOTR a couple times and also the hobbit several times.
I've also seen the Hobbit and LOTR in cartoon format when I was quite young [and remember enjoying the cartoons ALOT! in fact more than the movie for some reason]
I have high hopes for the part 2 of LOTR. I felt that Peter Jackson didnt get a chance to proove himself in part 1 because there were no epic fighting scenes [such as the Battle of Helms Deep]. Perhaps a bit more gore and a higher adult rating [such as Army of Darkness]. That is where Peter Jackson's skills lie - splatter.
I definately think Speilberg and other directors could have done the job, maybe even better because they have better contacts.
I personally think that the movie would have been more true to the story if it were in black and white. But that's just my opinion and you're welcome to flame me