It never, ever fails to amaze me how this still confuses people. Partly because the idea of a canon or continuity being maintained in this series is ridiculous. Just go with the ride!
I always found that funny as well, that people still to this day are confused by it. If you look at the reviews of some people, they always consider it 1/2 remake & 1/2 sequel. I hate when they say that because it isn't true. I have to tell people that, Evil Dead II is in fact a sequel and it should start off when the force throws Ash into the woods, all the time when I show the movies to them. Don't worry EJT501, your not the only one who was confused. I think there are still some people out there who are still confused about it.