Just saw Princess Diaries 2 and enjoyed it. Wonderful outfits, cheesy romantic staging, and the incomparable Anne Hathaway is a good combination for a fun movie. No, I did not knit during the movie. A) I love Anne Hathaway movies B) I fear for my yarn in the sticky floored theater.
All in all, I'd say this movie would be worth watching again, either buying if inexpensive or renting from blockbuster. Rare praise from a "watch once and never again" person such as I. It is more than worthy of a Netflix rental, but I doubt I'd pay $7.75 to see it on the big screen again. Very funny with lots of snickering at the cheesy spots made the teenyboppers in front of me glare (loved the reference to Rosencrantz and Guildenstern) and her looooooovely outfits were so darn princess-y, I almost didn't notice how large her smile is. Julie Andrews also sings a small song (to which Anne sings a bit, too) which is rare these days.