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The Director's Cut features a roughly 4 minute longer cut than the Theatrical Version. Some plot scenes got extended and a detailed comparison between both versions with pictures can be found here.
Frankie first assumes that the killer is going to the scene of the crime to retrieve Melissa's barrette from the floor vent, but later realises that the killer was actually after the class ring that Melissa had clearly pulled from his hand during the attack. The killer leaves the ring after learning that it's going to take some work to get it (and clearly doesn't have the tool on him to open the vent), and either forgets that the ring is there or decides that as the ring is in the air vent and it is down quite deep, the ring will never be found. Later, Frankie makes the connection that the killer has come to claim the ring because the furnace in the school is going to be replaced the next week (this is mentioned in exposition as the teacher tells the children to wrap up warmly as the classroom will be cold during the installation period) and if the ring is found along with Melissa's barrette it is going to ultimately implicate him in her murder (as the ring is engraved with his initials).
The woman with the red hair is listed in the cast as Amanda. When Frankie and his friends go to the house of the Lady in White, Frankie learns that Amanda is not the ghost he assumed her to be but actually a real person. It transpires that Amanda is the sister of Ann Montgomery, the true "Lady in White", who was the mother of Melissa. Amanda had tried to commit suicide after her sister and niece died by setting fire to her home, but was ultimately stopped and incarcerated. She is later released but lives a reclusive life playing piano.
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