Before I answer this one, I'm going to have to warn fellow readers that this is a...
****SPOILER ALERT****
****SPOILER ALERT****
****SPOILER ALERT****
The end of the film seems to imply that the series of events that took place up to that point are all in the character's (Hank Holten) mind...that is until Capt. John Billings (Lance Henriksen) notices Susan Hastings' (Vanessa Angel) earring on the floor - finally, some *physcial proof* that what Hank (Kevin Dillon) was saying all along about vampires was true!
Remember: Billings starts questioning the doctor about how the earring got in the room. The doctor's responses reveal that there was pretty much *no way* the earring could have gotten there by normal means.
You might also remember that Billings was watching video surveilance footage of the Hank staking Susan. You will also remember that only Hank was present in the footage - this ties in with the vampire's inability to appear in mirror's...or on film.
Anyhow, Billings picks up the earring, notices that the chair in the room has one of its legs removed (which was used for the stake).
He also notes that the earring is found in the same place that Susan's body would have been, when Hank was staking her in the surveilance footage.
On a hunch, he looks under the bed with his flashlight...and who's there?
Boo!
Susan the vampire! :D
This obviously means that the events were not part of Hank's imagination. Much of the obscuring comes due to the vampire's hypnotic ability, hence the resulting confusion the vampires have used to cover their tracks.
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