Pendragon Pictures take on War of the worlds. I guess it fits more into the "terrible" catagory more than the "cheesy", but it's SO badly done you can't help but laugh. By the end of the film, the main characters moustache is lop-sided.
Also, the director did all the special effects on his laptop, so that should give you an idea of just how bad it is. They somehow manage to make the film last about 3 hours, but I think half of that is filler footage of the main character running through fields and falling over a lot.
The dialogue is terrible. Example dialogue from the by standers when looking at the recently fallen Martian cylinder;
"I wonder whats inside?"
"Maybe there's coins inside! Or toys, or a train set!"
I couldn't make this crap up. It's awesome.