Just finished watching Season 2. I think it's definately better than Season 1 (as good as that was), it expanded on the universe quite a bit, I particularly liked the conflict between the vampires and the Fellowship of the Sun. I knew that Sarah, the pastor's wife would be crazy.
I really like the show overall. It's got one of the best relationships in TV. No not Bill and Sookie, but Hoyt and Jessica. And some really great characters like Eric, Pam and Lafayette. Maryann was another great character. My favourite line from any episode of True Blood had to be this exchange:
Sarah: You're worse than Judas!
Jason: Why? What, what did he do to you?
And any scene with Lafayette is guaranteed to be hilarious, though there was less of it in Season 2 unfortunately.