Thats the film the new film is based on. I saw the one that hit theaters this year. http://en.wikipedia.org/wiki/District_9
I was also one of the people dragged to watch the movie. I wanted to watch Basterds instead of this - but this was amazing too. So was Basterds.
The film is about an alien race that lands in Johannesburg. Initially they are treated as refugees, but then are the segregated slum of society - the slum named District 9. The South African government decides to evict them far from the city where there is no human civilization. You ethically question the human action against the aliens.Its a fascinating film.