Artisan Entertainment, who distributed the original movie, was keen to produce a sequel quickly, to take advantage of its predecessor's popularity. However, Haxan Films, the producers of the first film (which included original directors Daniel Myrick and Eduardo Sánchez), weren't comfortable working on a sequel so quickly, and preferred to wait until the hype had diminished a bit. Artisan (who had the rights) then decided to produce the sequel without Haxan Films. Myrick and Sanchez were given an executive producers credit, but both men later stated that they had very little creative input, and disliked the final film.
Unhappy with Joe Berlinger's version of the film, Artisan opted to re-shoot certain scenes to add more "traditional" horror movie elements and re-cut the movie to make it more commercial. Berlinger repeatedly states on the DVD commentary that he doesn't like the changes that were made and that they ruin the ambiguous tone of the plot.
In the scene in which Jeffrey is sitting at a table in the madhouse and the camera moves towards him you can see an old s/w photograph hanging on the wall. This is a photo of Kyle Brody, the 8th kid kidnapped by Rustin Parr and the only one who wasn't killed by him. Kyle Brody was the main witness in the Rustin Parr trial and he described how the children were killed. He spent most of his life in a madhouse. So the madhouse in which Jeffrey lives could be exactly the one in which Kyle Brody spent his life. As the photo shows Kyle Brody as a grown-up, it was shot in the madhouse, too.
When the tour group picks up Kim Diamond in the cemetery, she is laying of a tomb marked "Treacle". Eileen Treacle is one of the Blair Witch's alleged victims that was drowned in a creek in the 1800's according to the "Curse of the Blair Witch" companion documentary.
Similar to its predecessor, the main characters are named after the actors who played them. However, since this film actually had a script, writers Dick Beebe and Joe Berlinger had to give the characters names long before casting. Below are the characters' names in the finished film and what they were called in the 3 January 2000 first draft of the script: Kim Diamond, Domini Van Teer; Jeffrey Patterson, Cotter Kaller; Erica Geerson, Heather Arendt; Tristen Ryler, Anna Tassio; Stephen Ryan Parker, Nick Leavitt.
The song "Feel Good Hit Of The Summer" by Queens Of The Stone Age plays over the scene in which everyone is drinking and smoking weed. The song's lyrics are simply "Nicotine, Valium, Vicodin, Marijuana, Ecstasy and Alcohol" four or five times every verse. The chorus is "C-c-c-c-c-cocaine" a few times.
Unlike its predecessor, this film is not presented in a found footage format. It is also the only film in the series not filmed in found footage as Blair Witch (2016), the third film, is presented in this format.
Jeffrey Patterson is a movie enthusiast with ambitions of being a filmmaker and "Book of Shadows" is the name of one of the scripts he put together and intends to shoot hence the title of the film, which was selected by the studio Artisan Entertainment. Furthermore, the actual "Book of Shadows" is a Wiccan spell book and is figuratively used in the movie in that the group literally falls under the spell of the Blair Witch after entering her diabolical terrain.
When Erica Leerhsen had originally auditioned for Kim Director's role, she went to the audition with short blonde hair and as director Joe Berlinger described "completely Gothed-out", but ultimately was given the supporting role of "Erica". It was Joe Berlinger who decided to make her a longhaired redhead.