"The guy breaks into the place, and soon finds it full of spirits who are reenacting the events of many years ago. Eventually, the guy begins interacting with the ghosts and BECOMES one of the characters in the reenactment."

- THAT part sounds like "Lady in Red", but...clearly this is not the film you are after...

If you ever figure out the name, let me know so I can skip because you gave away the ending.

You are correct Sir :)