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The following FAQ entries may contain spoilers. Only the biggest ones (if any) will be covered with spoiler tags. Spoiler tags are used sparingly in order to make the page more readable.
For detailed information about the amounts and types of (a) sex and nudity, (b) violence and gore, (c) profanity, (d) alcohol, drugs, and smoking, and (e) frightening and intense scenes in this movie, consult the IMDb Parents Guide for this movie. The Parents Guide for Paranormal Activity 2 can be found here.
Two months prior to the events in Paranormal Activity, Katie's sister Kristi (Sprague Grayden) and her husband Dan (Brian Boland) find that their house has been broken into. Consequently, Dan sets up cameras for surveillance but finds much more than robbers. The demon that has haunted Katie and Kristi since they were young has returned and has its sights set on Kristi's infant son Hunter (William Juan Prieto and Jackson Xenia Prieto).
Paranormal Activity 2 is based on a screenplay by American television writer Michael R. Perry. The story is both a prequel and a sequel to Paranormal Activity (2007), beginning two months before the events depicted in the first film and providing an explanation of the aftermath of both. Paranormal Activity 2 was followed by Paranormal Activity 3 (2011), Paranormal Activity 4 (2012), and Paranormal Activity: The Ghost Dimension (2015).
Both movies can be viewed as stand-alones, but watching both movies provides a complete storyline. Paranormal Activity explains what happened to Katie (Katie Featherston) and her boyfriend Micah (Micah Sloat). Paranormal Activity 2 explains what happens to Katie's sister Kristi (Sprague Grayden) and what led up to the events in Katie's house. Paranormal Activity 2 ends with the aftermath. To truly understand the sequence of events, both movies should be seen, but the order is unimportant.
According to her online research, Ali (Molly Ephraim) learns that "ghosts are dead people, so they're like human energy, and demons are not human. They're just like evil."
It wants Hunter. It is explained in the movie that Kristi's great-grandmother made a deal with a demon for wealth and power. Payment is to be forfeiture of the next firstborn male child. If the debt is not honored, the demon will follow her brood until the soul of a male infant is collected. Hunter is the first male to be born in the family line since the deal was made.
It has been suggested that the fear it provokes must reach a certain level before it can possess someone.
Three weeks after the demon is transferred from Kristi to Katie, Katie tells Kristi that funny things are happening to her and Micah (as revealed in Paranormal Activity, the first movie). Katie then goes home and finds that Micah has installed cameras around the house (as portrayed in the beginning of the first movie). A note then appears to say that Micah was killed on October 8th. On the night of October 9, Katie enters Hunter's bedroom, attacks Kristi, and takes Hunter. Another note says: Ali returned from a school trip and found the bodies of Kristi and Daniel Rey on October 12, 2006. Katie and Hunter's whereabouts remain unknown.
No additional footage is shown. You only hear some background "everyday life" noise and static, seemingly from the security camera, including sounds from the baby at the end of the credits.
The Unrated Version runs 7 minutes longer and shows more ghost terror in form of dropping baby's high chair, burning food and hot nuts in the whirlpool. None of these scenes are really important for the story development and most likely they got removed to shorten the running time of the movie. A detailed comparison between both versions with pictures can be found here.
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