New Nightmare is not only the best Elm St. movie since the original, it's probably the best movie of the series. Wes Craven's had ten years to further hone his writing and directing skills, and it shows. The core premise is interesting and a clever twist on the old idea. The best summation is that of all the films, this was the only one that still evoked feelings of tension from me, even though I know the film well.
Freddy Krueger is back to doing what he does best - being an all pervading background presence that only appears now and again. This is highlighted by an appearance of Freddy as he became, a pop-culture icon, as opposed to a demonic force. It makes the appearances of demon Freddy more interesting, scarier, because we haven't had time to get used to his new incarnation.
Some clever ideas, solid acting, and a great script - I could easily sit and watch it again. Which I'll do at some point soon so I can listen to Craven's commentary track.