Trivia: Daveigh Chase declined to appear in the sequel because of the small amount of screentime. She appears in the movie via archive footage from the first movie, and her stunt double from the first movie, Kelly Stables, plays evil Samara in this movie.
Trivia: Copies of the "Cursed Tape" were dropped in public places as a form of promotion. After about five minutes of footage, the viewer is directed to the movie's website.
Trivia: Director Hideo Nakata has disowned the film, and claimed that due to excessive studio meddling and being forced to dumb the film down by producers, the final product has no resemblance to the film he had in mind when production began. Reportedly, star Naomi Watts also wasn't too keen on the film.
Trivia: The producers attempted to get Richard Kelly to direct the film. Kelly had recently made the low-budget cult-classic "Donnie Darko," and was very popular. However, Kelly wasn't interested in making a sequel to someone else's film.
Trivia: There were reportedly a number of strange occurrences during production. This includes a production office flooding not once, but twice. (Which is more unnerving given the films use of water and drowning-based imagery.) A deer wandered onto the studio lot and charged a crew-member at one point. (Mirroring a scene in the film in which deer attack a car.) And finally, production was briefly delayed when a swarm of bees attacked a prop truck for several minutes. Probably just coincidences... but it kinda makes you think.
Answer: I was wondering the same thing. My guess is that it was when the water encircles his feet.