I saw this film when it was released to DVD and I hated it. I really thought it was a pile of poo and an insult to the first film (much like the other bad reviews on here). So, I had no intention of buying the blu-ray; however, I got the trilogy boxset for cheaper than buying films 1 & 3 so I got this one in the set. I re-watched the first film and it was just as brilliant as it's always been (the picture and sound were a big improvement over the DVD too!); but I was very tempted to skip Texas Blood Money. I'm actually glad I didn't. Is this an excellent film? No, it's not. But, it IS a good film for what it is.
The main thing wrong with this film is that the director/actors play it for laughs way too much. The first film was very funny; but NOT because the actors tried to make it so and, as a result, it made the humour much more effective. However, #2 forgets that and plays it for laughs. Some of those laughs work; but most of them don't. The story also isn't as good as it could be and the effects border on dreadful. But, this film is meant to be an homage to the old B-movies and, on that level, it works quite well. I certainly think it bears re-watching if you hated it first time around; and I advise you NOT to watch the first film before.
The picture quality wasn't bad on the blu-ray. There were moments of pixel-blocking in distance shots; but most of the close-ups were nice and sharp. The colours are rich and blacks nice and inky. Not a great blu-ray; but not the travesty of Hangman's Daughter either. No extras though. A DTS english audio track is a good bonus though. All in all well worth a watch.