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This one starts with Laurie Strode (Jaimie Lee Curtis) in a sanitarium, describing how she is in hell. We then see two nurses walking up to her room. The older, more experienced one explainss to the rookie about what happened in the last halloween movie and how Michael Myers survived by crushing the larynx of a man and strapping his mask on that guy. The nurses then attempt to give Laurie some pills and leave. As soon as they leave, Laurie spits them out and stuffs them in her Raggedy-Ann doll. She then looks out the window and sees Michael (Brad Loree). She blinks, and he disappears.
Meanwhile, a security guard is checking out some noises he heard. He calls out and no one answers. He goes to take a smoke, but is then attacked by...one of the inmates. He was wandering around outside in a clown mask, pretending to be a serial killer. The guard takes him back in, and then we see Michael watching. He goes inside. Meanwhile, two guards are in the control room and see something moving on one of the monitors. They think it's one of the inmates, so they go check it out. After they leave, we see Michael passing in front of one of the monitors.
The guards get in the basement and at first, find nothing. One of them stops to get a snack at a vending machine while the other checks out the laundry room. While he's eating, the snacker hears a noise from the laundry room, followed by a muffled yell. He goes in and finds nothing but an active dryer. He stops it, and inside is the other guard's head. He falls backward right into Michael, who makes short work of him. Michael then goes to Laurie's room, but is seen by the wannabe serial killer. He ignores him, and enters Lauries room.
She hits him from behind, and then runs up to the roof. She manages to trap him in a snare, leaving him dangling by one foot from a rope on an antennae. She is about to kill him, but he starts putting his hands on his head, which reminds her of when he was a little boy. She then decides to make sure its him, but just as she's about to pull off his mask, he grabs her and imaples her on his knife. She says she'll see him in hell, and falls to the ground.
Next, we meet Sara Moyer (Bianca Kajlich). She's a freshman college student and her and her two friends, Jenna (Katee Sackhoff) and Rudy (Sean Patrick Thomas), have just found out they've been selected to take place in a live webcast from Michael Myer's house. We also find out that Sarah is currently having some kind of relationship with a computer wiz named Myles (Ryan Merriman), even though she only knows him by his screen name, Deckard.
That night, Rudy, Sara, and Jenna meet the three other people they'll be spending tomorrow night with - Bill (Thomas Ian Nicholas), Jim (Luke Kirby), and Donna (Daisy McCrackin). They also meet Freddie Harris (Busta Rhymes) and Nora Winston (Tyra Banks), the masterminds behind this entertainment event.
Freddie explains that with the exception of a few camers placed randomly throughout the house, the audience will see only what they see, kind of like on MTV's "Fear" show. They do some prelim interviews, but for some reason, Sara screams during hers. That night, she goes to Freddie's hotel room and says that she wants out. He just tells her to sleep on it, and she says okay.
The next day, while the crew is setting up for tonight, the girls go out shopping for clothes that will make them look good. While Sara is trying on a shirt, she looks in the mirror, and sees Michael Myers. She turns around, but only sees a mother fussing over her son's costume. Back at the house, a cameraman is arguing with Nora about a shot angle. She just tells him to go with what's good, and then turns to make a cappucino with whipped cream. On the monitor, though, we see someone (Michael - duh) pick up the tripod and let a hook attachment loose. He then stabs the cameraman, puts the camera down in front of the stairs and drags the body away. By the time Nora looks back, all she can see is a great shot of the stairs.
Later that afternoon, the kids are outfitted with with head cameras and let loose into the house. They explore a little bit, but quickly become bored. They decide to just split up and they go off in teams of two - Donna and Jim, Jenna and Bill, and Sara and Rudy. As night falls, the kids are starting to get fed up with this. Suddenly, they hear Jenna scream and they rush to see....that she was faking it. They all go off except for Bill, who looks into a mirror, says, "I'm gonna get her for that. Just watch." Immediately after he says this, Michael's arms pop out of the mirror and stab him in the head with the knife. Next, we see Michael walking around downstairs. Suddenly, another Michael pops up behind him, the two walk, and then the first Michael, who is really Freddie, turns around and starts yelling at the REAL Michael, cause he thinks it's just the cameraman. He eventually yells at Michael to just "Scoot! Go on, get!" which, amazingly, he does.
While this is happening, Myles, who was at a halloween party with his bud, happens to wander into a room with a computer. He dials up the webcast, but is momentarily interrupted by a football player and a mermaid who want to have sex. He tells them about the show and asks if they want to watch it. The football player says "No!", but when the mermaid says "Sure!" The football player quickly says "Okay." Eventually, about half the people at the party end up in there with Myles, including a genie, a man in black, and (I think) Freddie Kruger.
Anyway, back to the show. Donna and Jim, who were loooking for a place to have sex, stumble across a big empty room in the basement under a trapdoor. They realize there's no cameras, so they start having sex. Suddenly, a wall caves in and some skeletons fall out of a wall. They're freaked at first, but then Jim picks up a bone and reads "Made in f***ing Taiwan." Then he goes back up for something. While Donna is waiting, she notices a hole in the rocks behind the wall. She shoves them aside and finds the entrance to Michaels bedroom in the sewer. She turns around and sees Michael. She tries to run but the spiky gate at the other end is padlocked shut. Michael grabs her and impales her on one of the spikes.
Back upstairs, Kara is going through some stuff she had showed the others earlier, some coloring books she had found that had all of the pictures doing dirty things with knives stuck in them and blood pouring out of the bodies. We see Michael behind her, and then so does she. She runs and gets Rudy, who was getting high in one of the bedrooms with Jenna off of his mini-bong. She takes him downstairs, and then Jim shows up, and the two boys start to pound on Michael, until he cries out for them to stop. It's Freddie again. He tells them that this was all a setup, but urges them to keep quiet about it and stay anyway, if only for the money. He then leaves to do some more scaring. The three talk it over, and decide to leave anyway. Before they can though, Jenna comes out to the top of the stairs crying. She found where Michael had stashed the cameraman he killed (in the attic). Suddenly, the real Michael pops out and decapitates her. The kids at the party think its fake, except for Myles, who calls the police. The kids in the house realize who it is, and run. Jim tries to face off against Michael in the living room, but Michael just crushes his head. Rudy tries the same thing in the kitchen, but he gets stuck to a door with three or four knives. As for Sara, she runs to the second floor and hides in a bedroom, barricading the door. She contacts Myles with her camera, talking to him directly (although calling him Deckard) and recieving his messages on her palm pilot. He tells her Michael is in the hall, and says not to scream, which of course, she does. Michael hears, and starts trying to get in. With Myles telling her where Michael is, she goes out a window (but gets slashed in the leg), across the roof, into the attic, and down into the sewer bedroom. She then heads back upstairs, but is pulled aside by Freddie. Suddenly, Michael pops up, but Sara manages to tie a phone cord around his neck, and Freddie lands a good kick on his chest that knocks him out the window.
Freddie and Sara head down to the first floor, intending to break open a window, but Myles tells them that Michael is still alive. Right after finding this out, Michael shows up and stabs Freddie in the chest. He then chases Sara out to the garage/headquarters, where she sees Nora dead and then takes Michael on with a chainsaw, but doesn't get to kill him (not enough gas). She does, however, manage to get the place burning. She also knocks Michael out somehow, but ends up getting trapped under some equipment. Michael wakes up and starts coming for her, but Freddie busts in, knocks him into some wiring, and electrifies him. He then grabs Sara and they get out.
Later, some reporters are trying to get a statement out of Sara. She says "Thank you, Deckard, " which earns Myles a big cheer at the party. Before she can say more, Freddie rescues her from the reporters. Some paramedics then come through with Michael's body on a gurney. Sara opens the bag up, and her and Freddie say how ugly it is. Freddie tells Michael to never, ever rest in peace, and the body is loaded into an ambulance and taken to a morgue. Upon arrival, the morgue attendant is told she has a celebrity tenant now. She says "Let me get my autograph book." She shuts up when she find out it's Michael Myers. The gurney wheelers leave her and Michael alone. She opens the bag, and we see Michael's face. It is a sort of greenish white color, with long black hair, gashes, and purple rings around the eyes, which have become black bulbs.
The eyes snap open.......
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