In Part II of this series [2], we analyze the three-region problem. The formulation constitutes an integrated analysis of the three regions, which permits a study of the yarn path and related tension distributions for unwind points away from the two ends of the package. The numerical solutions presented reveal a very complex interaction between several of the nondimensional parameters characteristic of the problem. The complexity arises from the problem's nonlinear nature, whose solutions exhibit a bifurcation phenomenon and consequent inherent instabilities. In brief, we argue that heuristic discussions about the physics of the problem in dimensional space can be extremely misleading.