I really want to see The Hobbit, I'm totally lost to the LOTR thing. Is the Hobbit a prequel to those books/films? Feel so stupid asking.. 
yes the hobbit happened before the LOTR.
Our movie theater was PACKED. No way I'm going tonight
should I read or watch the other ones first?
It doesnt hurt to watch this one than
Then the other ones. I have yet to read them too.
yes start with the hobbit, happens decades before the LORT is set