The first Urban Legend film ended with the death of the serial killer shrouded in mystery clearly pointing at a sequel. Urban Legends: Final Cut completely ignores that scenario (except until the very end) and comes up with a new one that is a rehash of the original film, but arguably executed slightly better.
In this film, Amy Mayfield (Jennifer Morrison) is a film student at Alpine University trying to come up with a thesis project. Given that her father is a famous director, there are heavy expectations placed on her. She finally decides on a project featuring a serial killer whose modus operandi is based on urban legends, myths where young college students are killed in hideous and gruesome ways.
Needless to say, this idea takes on a life of its own as people around Amy start dying. As in the Scream films, there are a lot of red herrings as to the identity of the real killer. In this film, the ending was one of the more surprising ones for me (though not completely a shock).
The suspense level in the film is fairly high (thanks in part of the surreal visual effects) and perhaps the cleverest aspect of the movie is that it dismisses the events in the first one as an urban legend (also the multiple choice involving guns at the end is amusing). The acting is passable. Urban Legends: Final Cut is a decent time killer and worth the matinee fare on the big screen. I don't recommend renting it though, unless you're a fan of the self-referential slash/gore horror genre.