The movie in the sequel is a parellel plot alongside the "fans". The movie plot is basically centered around the filming of a exploitation flick based around the happenings of the first game. Jacket; which is the unofficial name of the nameless protagonist in the first game has become some sort of legend or a myth if you will. And thus his actions have become more and more extreme retroactively through this myth. This film is some sort of perverse recreation of what the director
thinks happened or maybe he just wanted to make it more extreme to satisfy his sick mind.
This leads us to the "fans" which are the four masked people at the party after the rape scene in the video at the end of the paragraph. As the name implies they want to recreate the actions of 'Jacket' in the first game through senseless violence against innocents. Look at the end of this video to see what I mean.
http://www.youtube.com/watch?v=beUrlDwf56w
They are kinda missing the point though and seems mostly bored and disenfranchised (not to mention sadistic and psychopathic) individuals. The fans also represent some fans of the first game that wanted the game to be exactly the same as the sequel according to the developers.
http://www.youtube.com/watch?v=Oh3DV-2LaAg