There's a big personal problem I have when I'm watching fan films/low budget films in general. I hate video. The look is off putting, it takes me out of the experience every time and I can't take it as seriously. For the same reason I dislike recent Michael Mann films. Public Enemy, Collateral, Miami Vice, they look so incredibly cheap, even though they aren't, and it takes me out of the scenes every single time.
There's something about that contrast between "great sets" or "good actors" and then "horrible camera and sound" that puts me totally off. For some reason, I can take a bad set and bad acting if camera and sound is great, but not the other way round.
The worst thing is when, even though they only have only low budget video cameras, they decide to use shaky cam and zooming and focussing and over/under exposure and similar things as stylistic device. That makes it look even cheaper and more unprofessional. Stuff like that ruined "Of Gods and Men" for me for example.
The thing is, in my opinion, one should not try to "ruin" the image on purpose when you already are on a low budget. Try to make it look as good as possible.