I have made short films using both CGI and "puppets".
Strangely, they were all about aliens.
The CGI I used did not look crap, however. It was very convincing. However, we did do a pretty good job on it, so it easily could've gone all crappy.
The puppets I used for the other film, was actually an entire costume. The film was shot through the perspective of a home video in a caravan site. Toward the end, a frisbee gets thrown into the bushes, and the person with the camera goes to get it. Through the bushes and in a clearing the other side, an alien craft and four white aliens are standing outside, looking right into the lens of the camera. As the guy gets up he notices them, says "oh shit", then runs in a blair witch type moment.
The costumes we made for that film were really high quality, and again, worked well. But as I said before, it could easily have gone bad.
For instance, watch the movie "communion", and you will soon see how puppets can be crap.
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