Final 12 minutes (spoilers)
Let me just state, I find that as an attempt at a fake snuff film the first film is superior (personally I find the best example I've seen is the documentary scenes in Cannibal Holocaust but thats just me) but I found that as a creepy horror film this is far superior.
I found it gruesome but undeserved of its reputation until after the head came off. The final scenes of the killer playing with the head, posing with the corpse and showing off his "collection" whilst ranting and hooting set in a creepiness that the actual gory violence hadn't brought.
I finished the film and was mildly creeped out at first, then about 10 minutes later it really set in.
Who'd have thought that a film often touted as a gory effects reel would actually be most disturbing in its scenes without violence.