While traveling to Canada to attend a film festival in Toronto, director and co-writer Fred Vogel was arrested, pending charges of transporting obscene materials into Canada, when copies of August Underground and its sequel were found by customs officials among the merchandise he had intended to bring to the convention. The charges were eventually dropped, after Vogel had spent roughly ten hours in customs prison.
The old woman who was stabbed in the film was actually the director Fred Vogel's grandmother.
The film was shot on a Hi8 camera but was degraded in post production to make it appear as realistic as possible.
So many people thought this film was real that the director Fred Vogel had to go out and make sequels. People still think that this film was real to this day.
The "Supermarket Ass Sniffer" Was played by Stephen Vogel The director Fred Vogels brother.