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Revealing mistake: When Karen is searching the net, she is on "www.tdn_japan.con" [sic]. This address wouldn't work... Also the Google bar spells "Imaegs" not "Images." (00:59:30)
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Continuity mistake: When Yoko opens the door and ventures into the attic, the slide-door she pushes is nearly fully open. Yet when we see the shot of Yoko's legs dangling, the door is now much further shut. (00:06:20 - 00:07:35)
Answer: Kayako was murdered by her husband when he found out that she has romantic feelings for another man, since this would be a crime of passion driven by hatred the cutting out her face from all the photos then sinisterly pinning them to the door is another sign of his hatred. Like him removing her from the family and cause futher pain with the needles. Also to display her face would most likely be a way of shaming her further, insult to injury and all that.