If you can get through the first part with the items dropping from the air without taking damage, the rest isn't that bad. You basically stand on one side of the room and just punch the knives out of the air. Once the second knife is dead, the picture will come off the wall and just gotta spam punches on it, then avoid the chandelier drop.
Yep. When the Turbo Grax 16 version came out, Rick's mask was changed to distinguish him from Jason (also to avoid a lawsuit). Splatterhouse 2 saw the white mask return but as a skull mask.