When I first watched Paranormal Activity, I was thrilled at the emergence of this new genre (I hadn't watched the Blair Witch Project then): where the makers do not resort to showing gaga special effects and extensive makeup to create ghosts, but instead feed on the emotions and reactions of the affected victims. This makes the stories much more relatable.
Paranormal Activity 2 is a parallel prequel to the first movie: it starts sometime before the first one, and goes up to the same date. It tells the story of Kristi and Dan (Kristi is Katie's sister, the girl from the first movie), who move into a new house with their children Ali and Hunter, and a housekeeper Martine. After a break-in, Dan installs multiple cameras to keep an eye on his infant son. The story unfolds like a video-diary, moving from one camera to the other, and occasionally to a handheld.
Goosebump-o-meter: 3-4 of them in a runtime of 91 minutes. Because I had already seen the first one, I was well aware of what this genre is capable of. Also, two-thirds of the film is dedicated to developing the story and consists of 'normal activity' only. When the tensions starts building up, the camera gets shaky and the lights go off. You keep trying to figure out the characters in the dark, getting perplexed hearing shrieks and growls, but not getting to see much. One smart move was to incorporate the kid: he is central to the story, and my heart skipped a beat when there was something happening to him. Apart from it, the connect with the first film is good, and the crisp runtime will keep you from getting bored.
Might not work with Indian audiences, as we want to see the 'bhoot' in flesh and blood, good old Ramsay style. This one depends more on your imagination to deliver the same effect.
Watch a late night show, and walk home alone afterwards, to get full paisa-vasool :-P !!