Let's discuss THE ENDING *MAJOR SPOILERS*
Here are my possible two interpretations of the ending:
1) "Kolobos", simply put, is Kyra's alternate personality. Her schizophrenic condition was never treated (she never did live in a mental hospital) and is getting out of control. Therefore, the events in the film never happened, and the only reason why she was wondering the streets in the beginning was because
"Kolobos" told her to cut up her face and her body and wonder the streets. Eventually at the end, "Kolobos" tells her to actually put an add in the paper for the Big Brother type TV show, and the events in the film will actually happen, except Kyra will be the killer who kills the five people off, in her "Kolobos" personality.
2) The events in the film actually did happen, except Kyra was the killer in her "Kolobos" personality. She just gave the wrong address for the house and that's why the nurse said there is no evidence that her story is true. She was wondering the streets at the end because her "Kolobos" personality traumatized her to cut her face and her body. The images on the television screen were only holucinations. When Erica said her and Chris never met the investor for the project, it was Kyra who invested in it. Her telephone call at the end means that another Big Brother type event will happen, and she will kill them off as her "Kolobos" personality again, at her house this time.
If I had to choose which one would make more sense, I would choose my first interpretation, because if the events actually did happen like in the second interpretation, there would be a couple of plot holes, like what happened to the people at the halfway house where Kyra lived and how she was able to afford getting the whole resort to herself. Also the first interpretation makes sense because Kyra's drawings helped shape the story in her mind.
Does anybody agree with these? Does anybody have any other interpretations?