This is all on Tenchi Muyo!, just answering a few questions.  Don't care, 
ignore it, and carry on.

<<   The manga is still going.  I got volume 11 a few weeks ago, though it
 looks like the guy's running out of ideas.>>

        The comics are still going, but most of the better plots are going to 
the Tenchi novels (which are on a release one when they feel like it, kinda 
basis).
 
<<     So they finally given up on the 3rd OAV series?>>


        They (AIC, the home production company) are saying it basically comes 
down to how successful Tenchi is on Cartoon Network. This is a cheap way of 
going about things, but after the last movie either satisfied fans, or made 
them un-fans, in Japan, things have kinda fizzled.

     What happened in TMiL2 anyway? >>

    I'm going to assume you know Tenchi Muyo! pretty well, dropping names and 
such.  If you don't, and I've terminally confused you, so would the movie, 
since it, like all OAV/TV continuations on the big screen, assumes you know 
everything, or at least the basics, of what's already come.
    Tenchi wanders of into the woods after dealing with the girls fighting 
again, and discovers a big Cammillia tree with a ghostly woman sticking out 
of it.  He investigates, has his memory taken from him, and begins living 
with her in a dream world.  Everyone goes to search for Tenchi, from Japan to 
the Science Academy which is way out somewheres in space.  He has sex with 
this new character, Haruna, which angered no end of fans (mostly fans who had 
been stubbornly insistent previously that Tenchi would have sex with <insert 
fave character>), and it did not help that many American fans hated her with 
a vengeful passion (I liked her, but hey, what's my opinion worth).  Ryoko 
and Ayeka then go to rescue him from the horrors of domestic bliss, and it is 
revealed that Haruna was the reason Tenchi's grandfather came to Earth in the 
first place.
        Hey, that came out pretty spoiler-free really.  Hm.  Oh, it had 
excellent, but weepy, music, too.  Somber guitar stuff rather than the usual 
pop, chipper fare (which is also great).