I've read Tolkien's Lord of the Rings and Hobbit, and watched the movies. What I'm going to say is my personal opinion.
First of all, about Lord of the Rings - this is one of the few times when the movie seems much better than the book. However, in case of Hobbit, the book was actually good, while the movies were crap.
How to read Tolkien? It's a good question. The Lord of the Rings book trilogy was SOOO boring. It gave a 2-page background story for each character, even if that character was going to die 3-4 pages later. And the main characters? I knew who was Argorn's grand-grand-grand-father, what he did, which kingdoms ruled, whom he married... but I barely knew anything personal about Aragorn himself. Therefore, almost no drama. I didn't care much for the characters. It brought me out of focus. I barely finished the trilogy.
On the other hand, the Hobbit book was much more interesting.