By OnMilwaukee Staff Writers   Published Jan 31, 2001 at 12:58 AM

Seeing a bad movie is only disappointing if you expected it to be good. When you see something that you expected to be bad, it met your expectations and can't be considered a letdown. What's really disappointing is a great movie with a horrible ending. Sam Raimi's ("A Simple Plan") "The Gift" is such a movie.

The stunningly beautiful Cate Blanchett ("Elizabeth," "Pushing Tin") stars as psychic and single mother Annie Wilson. She has been raising her three sons alone since the death of her husband in a work-related accident. To put food on the table she collects a little social security and does "readings" for people.

Annie's clients worship her. She is sweet, sensitive and compassionate. Annie is actually more therapist than anything. Her clients trust her and confide in her. She listens and gives them advice.

Annie's clients include a troubled young auto mechanic (Giovanni Ribisi) with deep, dark secrets and a battered housewife (Hilary Swank) whose husband (Keanu Reeves) begins threatening Annie and her kids after he discovers that his wife has been seeing her. He is just the beginning of Annie's troubles.

When the young fiancee (Katie Holmes) of a local principal (Greg Kinnear) goes missing, the woman's father, the police and the fiance turn to Annie for help. They are skeptical but don't have a single clue as to what happened to the woman.

Things start to get complicated then. Annie begins to have terrifying nightmares and grisly visions. She tries to make sense of them, but that isn't easy. Annie's life may be in danger and everything is not what it seems.

"The Gift," written by actor/writer/director Billy Bob Thornton and Tom Epperson, is a creepy, intense and suspenseful mystery/thriller for well over an hour. And then it self-destructs with an ending that is so ridiculous and appalling you can hardly believe what you're seeing. Thankfully, you can't overlook all of the things the movie has going for it.

For starters, Blanchett is mesmerizing and the rest of the cast shines in parts you never would have expected them to play. Holmes is devilishly fun as a Southern belle and Reeves is effectively scary playing a redneck abusive husband. Ribisi, Swank, Gary Cole, J.K. Simmons and Michael Jeter also turn in excellent work.

Raimi is an outstanding director and he does great work here. He builds a lot of tension and there are some truly frightening scenes. Aiding Raimi are composer Christopher Young and cinematographer Jamie Anderson. Young's score, a folk and country hybrid that at times resembles the music from "The Shawshank Redemption," is beautiful and Anderson makes the movie look incredible, particularly when it's raining or dark out.

Because most of "The Gift" is so good, you can't help but feel cheated by the ending. It reeks of laziness and comes close to completely ruining the entire movie. It's still a good movie with a lot in its favor, but it should have and could have been so much more.

Grade: B

"The Gift" is now playing.