NOES 2 starts several years after the original NOES and another family has moved into Nancy's house. The parents are almost caricatures of Leave it to Beaver types and their son Jesse is an awkward teenager who is plagued by nightmares and often wakes up screaming. Contrary to initial appearances, Jesse drives a really cute rich redhead to school every day, which sparks rumors of them banging. However, she seems to sort of get a clue when she comes over to hang out, and is faced with probably the gayest of all horror movie scenes ever.
It's rumored that this scene is often played on TV screens in gay clubs.
Jesse starts to dissect his dreams when he and his somewhat girlfriend Lisa read Nancy's diary and dig deeper. They (surprise!) discover the truth about Freddy and attempt to fight him. Easier said than done when Freddy is trying to gain control of Jesse's body, even interrupting a hot makeout sesh with his nasty-ass rotting tongue. Jesse continues to battle Freddy, trying to save his girlfriend, family, and friends.
This being the "gay Freddy movie" actually has nothing to do with the fact that this really doesn't fit in with NOES franchise. This movie just has an entirely different tone, and actually doesn't involve Freddy nearly enough. The scenes that do involve Krueger are sort of half-assed and lame, except for that one where he jumps out of Jesse's body, which is pretty freakin' sweet.
I don't think this is a horrible sequel, but it just doesn't fit in with the general vibe of what we know and love about NOES. There's a surplus of 80s hair and overacting, but not enough fun Freddy catch phrases or gory death scenes. Funny to think this lead to #3....probably my favorite NOES!
P.S. A Nightmare on Elm Street 2 remake coming next year?! C'mon people! Lame!