Here's the plot.
If you completed the first game, you know what happens to Kaos at the end. For those of you who didn't beat the game, here's what happens. Kaos was trapped in a energy bubble and was sent spiraling towards Earth. And the Skylanders got back at Kaos when HE sent THEM spiraling towards the Earth. And Kaos was turned into a toy. Now back to Giants. Kaos' toy form was put on a display case at at toy store. But unlike the Skylanders. Kaos manually freed himself from his toy prison. He then taunts Spyro, Stealth Elf, Stump Smash, Eruptor and Gill Grunt. But the Skylanders couldn't do a thing about it as they were in toy form. Afterwards Kaos uses a Portal of Power on himself, teleporting to an ancient part of Skylands. There he meets the Arkeyan Conquertron (Combo of Conqueror and Tron). The Conquertron was the slave master back when the Arkeyans were evil. He battled all eight Giants at once to protect the source of his master's power: A wearable iron hand called the Iron Fist of Arkus. Wear the fist, you become the Arkeyan King. The Arkeyan Army is invincible. So Kaos teams up with the Conquertron to find the lost city of Arkus, the resting tombs of the Iron Fist of Arkus. Back in the modern part of Skylands, Hugo (this is the only time you see Hugo in the console version) warns you, Flynn, and Cali that Kaos has returned. He bids you farewell on when you leave the Ruins. Prior to this game Flynn sold his Hot Air Balloon for an entire Airship (an Airship is a fictional pirate/sailor ship that flies.). The ship,called the Dread-Yacht, is bad luck, though. After buying a new engine from Auric, you have to save a gnome guy (actually his species is unidentified. He looks like a gnome though.) named Ermit from Brock. Brock's a Drow (evil elves) that has an arena. If you beat him, Ermit joins the crew and tells you about Kaos' master plan. After another while, you have to rescue some Mabu folk who were taken prisoner by Dreadbeard. If you don't know who Dreadbeard is, he's a pirate obsessed with card games. Last time he played a card game, he gained a whole ship filled with diamonds and gold. Anyway, he took over Cutthroat Carnival and forced his hostages to work as unpaid interns. You beat him at a game of Skystones (Skylander version of checkers). After nearing the end of the game, you have to fight Kaos' drilling machine, Drill-X (comically every word Drill-X says is in song). You are too late to stop Kaos from putting on the Iron Fist of Arkus though. Kaos transforms into a giant robot version of himself and an epic Boss Battle happens. Ermit and Machine Ghost (A ghost living inside a machine) remove the Fist, rendering Kaos completely powerless. Kaos cowardly runs back to his lair where he reveals he has 37 more evil plans to take over Skylands. And Finally Kaos' mother shows up and grounds him for being evil. Then there's a happy ending. The End.
If you want to know more about the plot, please go Spyro Wiki.
Here's a gallery
Tree Rex in his Gnarly Mode
Drill-X
Conquertron
In previous posts I said that the Dread-Yacht could be customized. In every level is a hidden Legendary Treasure. In the first game Legendary Treasures gave you some cash. But that's it. In this game, you can decorate the Dread-Yacht by putting the Legendary Treasures on display anywhere on the ship! Anyway, here's a picture of the Dread Yacht's exterior.
NOTE: These images came from Spyro Wiki. DOUBLE NOTE: I do not have any pictures of the inside.
