I remember seeing the trailer for this movie and thinking "Well the animation looks terrible, but it seems like it should be pretty funny." It wasn't funny, and that’s why "Hoodwinked" failed.
Hoodwinked jumps on the bandwagon of CGI fractured fairytale films. Where "Shrek" succeeded, "Hoodwinked" miserably fails. First of all "Hoodwinked" is not funny, its humor relies too much on the "Not everybody is what they seem" theme. It also depends too heavily upon pop-culture references.
The characters are all extremely dislikable. I found myself gritting my teeth every time Red walked into a scene (and I must agree with GrafSpee, the song Red sings is hideous). Grandma and the wolf's personalities both scream "Look! Look, we aren't at all what we seem, so that makes us funny right?" So we come to Twitchy. Twitchy is a horrible hybrid between Hammy, from "Over the Hedge, and Pillsy, from "Neurotically Yours. Twitchy steals much screen time chattering in a high pitch voice, which is difficult to understand at best.
Oh, I forgot another key factor, which makes this film unbearable, the plot. Someone is stealing all the goodies, and Grandma (who runs a goody factory), Red, The Wolf, and the Woodcutter are being questioned as possible suspects. Meanwhile, this goody-stealing fiend is on the loose. "Oh no what ever shall we do, us poor forest animals won't be able to eat goodies." Is that the best plot the writers could come up with? A monkey pounding on a typewriter could come up with a better story.
If you are looking for fractured fairy tales, give this one a pass, and see “Shrek” instead.