I just watched Paranormal Activity 2, and while yes, it's obviously fake, and yes, they threw the entire effort of trying to make it seem real away after the first one, it was still creepy. I've wrote about the first one before, basically saying that it had potential to be one of the creepiest movies ever made, but they completely threw it away with a few select mistakes (basically injecting 100% unbelievable not in a million years type effects into the story). This sequel you have to go into knowing that it's just a fake little story, which you would think would just ruin it, but it actually causes this thick, opressive atmosphere that stays for the entire movie until the very end when they kind throw it all out the door by relating it back to the first movie. Creepy, opressive, startling... decent if you want to feel creeped out afterward, but not doing much in the way of breaking new ground or being a future classic.