Of course it's setup, how do you think they get the cameras and the computer in there? It's not about it being real, it's just about seeing how people react to situations they perceive as scary. So they scout out these old asylums and factories, make sure most of the lights are turned out, then make the kids go out in the dark and scare the crap out of them. I think it's funny. You just know the producers have people hidden in the dark making noises.