If you were teaching someone to watch demo videos, what would you say the major and minor points to watch out for are?

Music selection
Focused Clear images
Watch for shaky shots
Clear audio
Emotional appeal
Story telling ability / Clarity of message
Use of Computer Graphics or Animation


Please add to my list....

Did they actually do the work?

Unfortunately it may be hard to tell from a demo reel if they don't have credits. However, you can ask the person what they did and hopefully they won't lie.
For editing reels, ask who did the audio and the graphics.

Depending on what they're looking for, the viewer should try to tune out irrelevant stuff. For motion graphics/broadcast design, usually you should just turn off the music track because it has nothing to do with their skills.

flow of the cut
colour gradation (i had one guy tell me that he "outsources" his editing if he needs to colour correct or colour grade...mind you he was coming to me for a job as an editor... go figure... )
continuation
formats used
technical knowledge of the formats and editing suites being used (im a prick with questions.. but at least this way i can filter out the bullshit)
DVD Authoring tools (if theyre offering it i give them the 3rd degree...)
sound (if theyre doing their own... )
CG and animation.. well it depends on what theyre trying to sell me.. sometimes ill hire some Lightwave geeks to get me afew logos and other jobs done..

the most important thing about watchign a demo when looking for staff, is to not be afraid to ask questions... and dont be afraid to say no..
if in doubt, give them a go for a week and see how they pan out.. they might surprise you... if it doesnt work out, so be it..

i find many reels to be too LOUD, too fast cutting , just FLASH ?? too music video .. but great if your looking for something music video like ...

in general i look at the reel with the audio OFF ( i'm not looking to tap my foot to the music) .. if i find something interesting i 'll watch the reel again with the audio ... after viewing i know which piece/section is ? not the best, or should i say the worst (if i judge on scale of 1-10 and the worst is a 9 then it's a great reel ) and i say that is the BEST i'm going to get from this company/person.. i then have to ask myself is that GOOD enough for the current project/position ??

what i find troubling is when i see something on the reel and i know who did what on it and the person at the moment is taking full credit for the whole section on the reel .. then when i ask a few questions i find out the person only directed the 2nd unit of the car passing by camera ( 3 sec shot) yet they included 2 min from the movie on their reel ....