Oh man, the change and tone were isanely different. They said the frank millers sequel couldnt be filmed, and the guy that directed it (Irv Kershner, did Empire Strikes Back) signed on to do the original script but the studio said hell no. I hated the plastic/blue look of the armor in the second one. The suit had a better design(the butt didnt wiggle when he walked when shot from the back) but his movements were way too mechanical, and he looked like a toy (all the plastic was too damn shiny)
They say in the first one that they want "total body prosthesis" so I guess that means he doesnt have any real parts, like arms or legs. Yeah, I was under the impression that it was his face, and yes, they kept the bullet hole. It was a plug. The effects/makeup/suit from the original were so awesome, and it was considered low budget too.