I agree about the change in Galadriel. The words were right, but as I recall she was beautiful and terrible, not demon-ghost-like.
The visualization of what Frodo sees when he wears the ring was good and important. I do recall that putting on the ring made him part of another world, with only dark images of the real world. It also explains through example why the riders could not see him better when he was NOT wearing it, because they see the same thing wearing their rings, relying instead on half-blinded instinct and the "sniffing".
A little less reliance on "hi-tech" by the moviemakers could have helped. After 3 hours of sensory bombardment, I too was longing for my hobbit hole in the Shire.