I enjoyed Shrek, but didn't like Shrek 2 much at all. There were a couple of good "gags", but overall I thought the movie fell flat. Prince Charming and Puss 'n Boots were both great, but I think alot of the charm of the first one was that you were seeing the fairy tale characters you grew up with in a new light! Not much of that here - I guess that's the same for most sequels though.
The animation was so good, it was downright creepy though! I swear, there was a couple of scenes I had to look twice to see if they used real people/animals!
But for the love of all that's holy, could they have crammed more product placement in? I was actually getting frustrated at one point. I heard that alot of companies paid a small fortune to get "noticed" in Shrek, but this was ridiculous. Everything from The Gap, to Burger King, to Starbucks were there. I felt like I was watching an animated James Bond movie after a while.