With the 1995 release of Toy Story, Pixar pushed the capacity of animation to imagination's infinity. Toy Story 2 soars beyond, picking up quite nicely where the original left off and developing the familiar characters in delightful new ways.

Seeing this spectacular extension of the first film on the big screen where we can appreciate the full range of its visual depth, it's hard to imagine that Disney once considered sending this sequel straight to video. In the short time since the first Toy Story, computer animation technology has moved light years forward, giving the Pixar whiz kids the chance to expand the scope, polish the look and concentrate on enriching the story the second time around.

If there is a flaw to the original Toy Story, it would be the way that each of the characters is narrowly defined by a single amusing trait. But in Toy Story 2, the characters interact with personae as fully-dimensional as their sharply rendered appearances. We get a sense that Buzz Lightyear has adjusted to his toy status and now Woody is more than just the jealous old toy in the chest. Where antagonism fueled the duo's relationship before, an incorruptible friendship now bonds them.

Much more substantial than just "the further adventures of Buzz and Woody," Toy Story 2 nicely complements its source. In a way, it feels like the missing half of the first film. When Woody is snatched by a greedy toy collector, Buzz gets the opportunity to repay his pull-string cowboy buddy for rescuing him from Sid.

Buzz spent most of Toy Story coping with his role change from intergalactic space ranger to one of Andy's toys. Woody, on the other hand, has no inkling of his origins. It's not until he's nabbed by toy fiend Big Al (a meticulously rendered human, complete with realistic facial hair, putting angular Andy and his clunky mother to shame) in the sequel that Woody meets the other characters from the Woody's Roundup television show and discovers his vintage toy roots.

Introduced to his companions, who are already part of Big Al's collection, Woody meets his knock-kneed steed Bullseye, cowgal pal Jessie (Joan Cusack in grating "yee ha!" mode) and mint-in-the-box rival Stinky Pete (Kelsey Grammer).

Now it's Woody's turn for an identity crisis. Confronted with his past, he must decide whether to escape back to Andy or join his newfound Roundup friends in museum-bound immortality. In a sequence that steals the movie and changes Woody's mind, Jessie shares her own memories of her previous owner Emily, who eventually grew too old to appreciate her ragdoll cowgirl companion.

As Jessie's tender reflections play out in a touching and bittersweet montage set to Sarah McLachlan's "When She Loved Me," what threatens to be the film's corniest and most expendable moment proves to be an awe-inspiring stretch of dazzling animation and sentiment. Woody also senses that he won't always be Andy's top priority, and it is this realization that ranks this film as The Velveteen Rabbit for a new generation of cyber-savvy tots.

With its broader themes and wider perspective, Toy Story 2 brims with creative genius and endearing animated antics. Unable to convince Mattel to let them use Barbie in the first film, Pixar works the world's most beloved bimbo into the fun this time. Things get even more exciting when you make room for an action-figure incarnation of Buzz Lightyear's nemesis Emperor Zurg, especially for a helpful new Buzz who hasn't quite come to terms with his toy standing.

Keep your eyes open for the geriatric title character of Pixar's solo chess-match short Geri's Game, appearing in a cameo as "the Cleaner." As an added treat, Pixar introduces the feature with Luxo Jr., the short behind the company's hopping lamp logo. Toy Story 2 is loaded with in-jokes for fans of the original, yet newcomers should be able to adjust with ease. Beyond the entertainment value of sly self-references, film fans should get a kick out of a hilarious "objects in mirror..." Jurassic Park gag and a Star Wars twist with a family-friendly resolution.

Looking back at Toy Story, which stands quite nicely on its own, we suddenly understand how perfectly Pixar's first film prepared a launching point for a follow-up. That the Pixar team can take Buzz, Woody and the other toys in such wild new directions without pausing to reintroduce their characters proves just how effectively Toy Story established this lovable ensemble. Naturally, it helps that toys like Mr. Potato Head, Speak & Spell and Lenny (the binoculars) figure prominently in our own childhood memories.

This heartfelt continuation of cinema's youngest classic knows how much we once loved certain toys and suspects that we still do. Most relevant to the non-kid component of the audience, Toy Story 2 cleverly pokes fun at those who have forgotten that the true value of toys comes from something more than their still being wrapped in an unopened package.