I am a massive horror film fan and this is definately one of my favourites. It seems that the people who have watched the Return trilogy are divided between those who highly regard the first two while shunning this, and those who think no.3 is the superior film. I think that one of the reasons this is better is because it does try and do something different with the formula, whilst still in keeping with the franchises' over-the-top style, fast-paced action and extreme gore.
Personally i think horror should be played straight anyway, but this is definatley not too serious a film so as to completely detach itself from the first two. Sequels usually fail because they try to replicate the originals and the best ones are always those that have changed things and progressed. I don't see how comparisons can be made with Halloween 3 as that had absolutely nothing to do with the originals whereas with ROTLD3 this is simply not the case, it is just a development.
The ideas of pain, death, love and desire in the film are explored well, and although the acting seems a bit crap at the beginning, the descent of Julie into undeath and her subsequent battle to suppress her bloodlust for the sake of not harming the man(boy?!) she loves is very good. All the scenes in the sewer are exciting and quite disturbing, probably made more so by the trashy looking 80s style special effects(CGI will never re-create this!) along with the emotional significance of Julie's actions when she finally kicks some ass. Also, the final scenes between the main couple are actually quite heart-wrenching. To me anyway.
A wonderful horror film overall which i felt i needed to defend as i really don't understand the negative reviews attached to it.
And if you don't care for anything i've written so far then please, if you're a hetero man or lesbian, watch the film if only to see the lovely Mindy Clarke in action - she is divine :-)