Box office phenomenon "Paranormal Activity" is reaching supernatural-caliber success, and the film's director and stars are discussing how the project found its winning formula.

"Paranormal Activity" has just surpassed "The Blair Witch Project" to become the most profitable movie ever; its box office has scared up a staggering 414,233 percent return on its initial investment.

Writer-director Oren Peli is amazed by the film's surging popularity. It was made for $11,000 and shot entirely in the directors house over the course of seven days. And now, buoyed by a deft world-of-mouth marketing campaign by Paramount, its box office total has reached $62 million and counting.

I would have been happy with just a strong performance, regardless of where 'Saw' ended up. I still would have been stoked! Peli said during an interview with Entertainment Weekly.

Like Peli, star Katie Featherson is still just processing all the news.

On Saturday, my mom was like, Katie, youre number one! she said. And I was like, No, not yet, just one step at a time.Then Sunday, Oren emailed the newest numbers and ... I gotta tell you, everything that has been happening? I could not be more excited and thankful, but it doesnt feel real.

For Israeli-born Peli, the "Paranormal Activity" journey began in 2006 after he heard strange noises in his San Diego home.

Im not saying there was a ghost, but I couldnt logically explain what was going on, he said. The technogeek side of me said, Well, what if I set up video cameras and made [scary] stuff happen? That could make an interesting movie.

Peli fronted $11,00 to make that movie a reality and then held an open casting call in Los Angeles, where he found Featherston and Micah Sloat, unknowns with minimal experience.

I went in, sat down, and Oren said, Why do you think your house is haunted? Featherston said. There was no Hey, how are you? Can I have your head shot?So I just started talking. I went with it. And thats kind of how the whole process was.

With no script, Peli simply told his actors where he wanted a scene to go and theyd improvise. No crew was involved either; Peli wanted to create a home-video-style thriller, so he had his leading man pull double duty as camera operator.

It was a very tight schedule, Sloat said. We were shooting until three or four in the morning every single night. Wed wake up early to catch the dawn, shoot, take a nap, and then shoot again all day.

Early on, few distributors were interested in the film, but after the second festival, DreamWorks (then part of Paramount) made an offer, and although they wanted to remake it as a star vehicle at first, they eventually changed their mind. When they lent a copy of the film to Steven Spielberg, even he couldnt watch "Paranormal Activity" alone at night.

It just killed my marrow -- it was too real to watch in the dark, Spielberg said. The next morning, in broad daylight, I watched the whole picture and it still scared me beyond measure. Thats when I called Stacey [Snider, DreamWorks co-chair] and said, We shouldnt remake this. We should release this.

With "Paranormal Activity" breaking all expectations, Paramount is considering a sequel.

And Peli will have a share of "Paranormal Activity's" profits. The director is also looking out for the stars, who were originally paid $500 each.

I dont have to have a job other than acting; so I bought a handbag, my guilty pleasure, Featherston said.

Now the actors are focused on pushing their careers forward.

I have to get out there and audition and use this opportunity to the best of my advantage, Featherston said. Ive been at this a long time and Im not gonna stop now.

Though neither she nor Sloat has lined up another job, theyve both signed with agents. And they seem almost embarrassed by the VIP treatment the industry is starting to give them.

The quality of meetings were able to get right now is much higher. So are the scripts, Featherston explained.

And Sloat has at least one idea for spending his newfound capital.

I would love to have a massive party and meet all the sweaty, geeky, awesome fans who posted on the Internet and believed in the film, he said. I just want to thank them.

See more "Paranormal Activity" coverage in Entertainment Weekly's Nov. 6 issue on newsstands nationwide.