Edit: revisited 8/07 and lost half a star.
Nice to look at, but it's really pretty weak compared with the original. The animation, textures and look of the film are often simply amazing - but take that away, and honestly it isn't that great a movie - though it was interesting for a while counting the movie/TV references. Warning though: Dreamworks could be falling into the same pop culture reference schtick that Disney wore out in the 90's.
I enjoyed the first half hour or so pretty well, but after the arrival in Far Far Away Land, the plot with the Fairy Godmother just didn't grab me, and towards the end it really broke down into a weak reprise of the first movie.
Puss in Boots was just an entirely pointless character as far as I could see, who contributed nothing important to the story at all. Aside from which
-*SPOILER* -
what is this whole build-up to him being this incredible, ominous assassin, and then after a brief attempt to carry out his commission he just up and switches sides for no convincing reason. It was too easy to be taken seriously, but not easy enough to be taken humourously.
- * END SPOILER * -
It still had most of the things that made the first movie such fun, but in much lesser amounts - and the storytelling and narrative drive were just nowhere near as enthralling.
It's still worth renting, but if the slip in quality continues, I'll be calling the next one 'Wreck 3'