The story is this, in Japan shortly before a teenage girl comitted suicide, she drew this picture, scanned it and posted it online. In korea this story broke out and it spread like wildfire. There are various posts around in korean forums that say that the viewer gets drawn to the girls blue eyes, they say they can detect a hint of wraith and sadness within the eyes. Maybe the girl had died with so much sadness and anger that her spirit haunts the image, or maybe the image provoke sadness, similar to the song 'Gloomy Sunday'.

The freaky bit is this, they say it is hard for a person to stare into the girls eyes for longer than 5 minutes, there are reports that some people have taken their own lives after doing so. People say the picture changes, as you view it there is a hint of a growing taunting smirk appearing on the girls lips or a dark ring grows around the girl or her eyes.

Okay it has taken me 3 tries now to post this on VGC cause the page kept screwing up and going blank? (I've never had trouble posting a thread with a video ever), so if that's any indication you're not meant to watch it who knows, I couldn't look at it for too long, too eary. (This isn't one of those joke video's either, nothing's going to pop out)

I've watched this on two separate occassions and can't say I saw any change in the picture.
I think there's a huge psychological factor here; the makers tell you you'll see an image form, thus you see the image by the power of suggestion.
Reminds of an old 1950's experiment in Norway, meant to show human weakness when faced with the power of suggestion:
There were three groups of people, one was told that there could be hostile people in the woods they were going to camp in, number two was told that there were a sigificant amount of game trails around the area where they'd be, and the third group was simply given a map and a compass and told to camp on the designated spot.

The trial lasted 5 days for every group, five full days with 5 full nights:

Upon returning, the first group could report that they had both seen and heard ominous figures and things in the woods and even claimed to have tried to chase down on these hostiles in the dark. There had also been an attack on the camp, with someone throwing conkers and rocks and them.

The second group recounted quite a few episodes as well, mostly involving animals and various sorts, from deer having eaten of their rations to predators roaring or lurking around the camp at night.
They had also found many of the game trails and followed them, seeing fox's dens and even a bear den!

The third group came back very rested and satisfied, and could berate that they'd had 5 peaceful and tranquil days with mushrooms, berries and wild fruits to feast on. They had gone swimming in a large pond and even done a little climbing in some trees looking for nuts. No one had disturbed them throughout their five days in camp.

Conclusion from the trial: There were no animals or other people in the area, it was in fact an enclosure owned at the time by a forest preservation company wanting to see how trees would fare without wildlife rending the bark, digging up roots, toppling them over etc.
No one had found the large fence surrounding the area, so of course, they were oblivious to the fact that it was not an open wildlife area.
Even still, its funny to note that so many individuals (there were 8 people, 4 women and 4 men in each group) were dead certain they saw and heard all manner of strange things in their stay!
Humankind is paranoid bordering on ludicrousness and the power of suggestion can make you see the devil in your breast pocket if the words are convincing enough.

@Mummelmann

That's so completely true, I would of been from the first camp and totally convinced I was being stalked.
I still think the video is interesting though, I spend hours looking up junk on youtube XD

I too spend hours upon hours looking up all kinds of videos, its really the most satisfying use of the web in my opinion!

For another awesome example of how suggestion can effect the human mind, go to Youtube and check out the Smash Bros. Brawl Theme Song Interpretation. You'll only hear what the video maker tells you to hear! I want to embed it, but I'm posting on my Wii. Can someone else?

 seen that pic years ago, however, the story i read was a lot different; taking place in Thailand (or some other country near it, if i'm mistaken), its one of those tragic stories of a man, an artist, who lost his girlfriend, became so depressed, and committed suicide, painting this picture before that...

another story behind it that i read a few years back was that it was from america. apparently, a man was greatly obsessed with a truly beautiful women. strangely, the people who were close to him have never heard, seen or met her, despite his constant mention of her (btw, as for her name, it was some common name like julia or alice or something like that). one day, strangely, the guy was deeply depressed, painted the picture and.... well, y'know......

if there's anything to conclude right now, it'd be that, as creepy as that pic is, there is no definitive story behind it. heck, for all we know, it could be some who's still happily alive who was drawing a portrait of someone and made it creepy by accident, and had his/her friends made stories out of it that kinda spread out of hand....