All the deaths that occurred throughout the movie did not occur. In addition, all the people who were killed have totally different personalities than in real life. Our heroine Toby (Kristen Riter) was imagining all the murders taking place. She had been hospitalized with the swine flu (perhaps this is why the producer chose to go by Allen Smithee) due to not having sex. So she arranges a date with her boyfriend Hardy (Matthew Goldsby) where she plans on losing her virginity. What she hadn't counted on is that Hardy, the one person whose identity hadn't changed throughout the movie, was the Breather. Hardy kills her, and ends up attending the funeral with everyone else. When he places 2 roses at the gravesite, Toby reaches up from the grave to kill Hardy.
Thanks Brian C!