Freddy? I don't get it

Okay, I admit it, I only watched about 15 minutes of this movie. Hubby and I were flipping through the channels and we landed on Sci Fi. We came in right before Freddy begins to melt. I don't know what happened prior to that. It creaped me out so bad, that I wanted to know what happened to him. I came on IMDB looking for answers. The only explanation I got from reading theee posts is that he was killed by something and so he started to melt. What the crap? I think I read that this also happened to a guy named Emmitt? Is that correct? Is there an actual explanation for what happened? It was so gross, but yet also so unbelievable. I asked my husband after they shot him, "uhhhh, did that actually happen, or was that a dream?" I know it's just a movie, and everything doesn't have to be believable, but come on, a guy turning to mush, and then when he's shot, he explodes??? There has to be more to it.

"The hideousness of that foot will haunt my dreams forever."