Ami Dolenz had a no-nudity clause in her contract. However, Republic Pictures' foreign sales department decided after she was cast that nudity was crucial for international sales and pressured director Kevin Tenney to talk Ami into waiving the clause. Thinking it unethical, Tenney refused and later stated in an interview that it may have been the reason Republic tried to keep him from returning for Witchboard III: The Possession (1995).
In the original screenplay, the character of "Susan Sydney" only appeared in photos. When it was decided to have her appear in the flesh at the end of the film, Julie Michaels was cast.
The only entry in this series to not feature the actresses nude because Ami Dolenz refused to do it. Producers were furious. They never hired her again and hired a different director for the next film because Kevin Tenney, who directed the first two, refused to pressure her into stripping for this one.
After the success of the first film, Paragon Arts International was eager to begin work on a sequel, but production and budget problems with their film Night Angel (1990) prevented them from moving forward. Six years passed before the sequel was finally made under their new banner, Blue Rider Pictures.
Julie Michaels said she originally auditioned to play the spirit as a blonde, but the casting director wouldn't even see her saying she wasn't right for the part. Michaels went home, dyed her hair dark and had her agent get her another audition under another name. That time they cast her saying she was perfect. When she revealed who she really was, they were stunned.