Wow, I disagree with you on almost every point. Interesting. I did the 12:01 showing too last night, and was absolutely blown away. I thought this one was 10 times better than the first, in almost every possible way. The first movie got a 8.5 from me, this one gets a 10+. I have not been this impressed with a movie in many years.

SPOILERS:

The movie started with the Gandolf vs. Balrog fight, true, but it was an expanded version, and was truly amazing. The Gollum dialogs, especially the first, were brilliant. And the Gimli and the wall scene probably gained the biggest laugh of the night. The Ent batle scenes were fantastic, as was the final battle.

The special effects were amazing, the story was great, it didn't drag at all, and the acting was certainly adequate. Honestly, I can think of nothing bad to say about this movie, and this is coming from someone who usually doesn't think much of movies.