Some people were a little bit surprised when Nikon released this lens in late 2009 to replace the first-generation version of the 70-200mm f/2.8 VR. The reason, it seems, is that the introduction of the D3 in 2007 - Nikon's first FX full-frame DSLR - had shown up some design shortcomings in the older lens. Although it's full-frame compatible, it seems to have effectively been designed with the DX crop-sensor format in mind; the performance falls off quite rapidly beyond the confines of the DX frame.
So what does the VR II lens do compared to its predecessor? It's a bit sharper, and a lot sharper in the corners of the FX frame. It focuses a bit closer too, though the price you pay for this some fairly extreme focus breathing; at a focus distance of 1.5m it behaves more like a 70-135mm lens.
All in all it's an excellent lens, as you'd expect. But if you use a DX camera, or if you don't really care about corner sharpness, then the previous generation lens is still excellent, and a bit cheaper too!
This lens can be used very well with Nikon Teleconverters. The TC-14E makes it a 100-280mm f/4 zoom; the TC-17E makes it a 120-340mm f/5-ish zoom; and the TC-20E makes it a 140-400mm f/5.6 zoom. With any Teleconverter, the lens will still autofocus on all AF-S compatible cameras.