This movie aired in Japanese theaters in December 2002. It DOES fit into the series, right before the Inuyasha gang travelled Northeast to discover Naraku's whereabouts (after episode 95, but before episode 102). It stars Inuyasha, Kagome, Sango, Miroku, Shippou, Kagura, Kanna, Kirara, and Kohaku. There are short &/or minor appearances by Kikyou, Sesshoumaru, Naraku, "Past" Houjou-kun, "Present" Houjou-kun, Kagome's friends (Eri, Arimi, Yuka), and Souta. The newest character, introduced as the movie's main bad guy, is a beautiful tennyo [heavenly maiden] by the name of Kaguya. She's not an angel, but she's not human--a race of beings that's rare and dangerous. (Think Ayashi no Ceres.)
This movie is beautifully drawn, beautifully acted, and several scenes in it make the fangirl in me vibrate with joy. ^_~ Below is a screencapped, brief summary of the events in this movie, but please, try to see this movie for yourself--options for seeing the movie or buying the Japanese DVD of it are outlined in the FAQ. Please enjoy the images, but if I catch you direct linking, I'll eat you!
The movie starts a few minutes before dawn--on the night that Inuyasha is human. So cute!
However, they're pursuing Naraku, so Inuyasha cannot help until sunrise.
The entire Yasha gang is there, chasing him around the area: Kagome, Miroku, Shippou, Sango, and Kirara.
Naraku almost doesn't stand a chance. Everyone is dead serious, and nothing is interfering in the battle.
Sango is definitely kicking some butt. She herds Naraku out of the forest that surrounds a small lake.
The shack where Inuyasha is holing up is crushed by Naraku's giant spider form--but the sun rises just in time.
After all the yelling I've done at the screen during the anime, they finally hit him in unision with everything they've got.
Ding, Dong! The Monkey's dead! Naraku DIES! How do we know for sure? Miroku looks down, and his Kazaana has disappeared
Many people react to the feel of his death--they seem to know that he's gone.
(Sadly, this is the only time Sesshoumaru appears. But don't worry, movie #3 will have a lot of him.)
Kohaku also reacts, and we get a sense that strange flashes of his life before Naraku keep showing up throughout this movie.
Kagura and Kanna, of course, realize what has happened. So what do they do?
Kanna can feel someone calling to her (I think), and since they've got nothing else to do, they decide to search out the voice. Meanwhile, the Yasha gang veg out, disbelieving that Naraku is finally dead. This is where we first meet a guy who at once looks really similar to both Nobunaga from early on in the series, and Houjou-kun from Kagome's time. He sees the girls bathing, and though Miroku gets the blame for peeking when he was just coming to see about this strange guy, the Past Houjou-kun gets away, confused by the antics of the Yasha gang. The Yasha gang split up for a bit. Kagome goes to school for at least a day, at which point Inuyasha comes out to get her, wandering with her little brother into the city to find her on her way home. She has to stuff him into a photo booth so that some middle school kids don't see him, where they continue arguing. Souta slides some money into the machine, and we're left with some pretty funny pictures.