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.
The film was to originally open with Frank Sinatra's song "Witchcraft" to give off a lighter atmosphere before the plot unfolded but Artisan Entertainment forced Joe Berlinger to instead include Marilyn Manson's "Disposable Teens" for the opening scene for a punk rock feel instead.
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.
This was Joe Berlinger's feature film debut as well as the only feature film that he directed until Extremely Wicked, Shockingly Evil and Vile (2019), 19 years later.
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.