The best in the series
Graphics: It's an upgrade from UN2, like UN2 was from 1, but not a major revamp. The cell graphics still look fantastic though.
Storyline: I kind of enjoyed the ultimate contest storyline although there isn't much going on afterwards. It wasn't rid deep in plot either. Just a filler that was stuffed in to the series... but it didn't seem all that out of place... although the OAV that came with the Japanese version made far less sense, since dead characters or enemy characters that weren't sppose to make an appearence make a guest appearence within it anyways. The hero's history seemed a bit rushed, since it skipped over some major battles, but it included all the sound ninja battles, which were my favorites of the last arc. The stories were slightly different as well, if they were to be compared to the anime or manga, such like kmimaro dying whle in his normal form, instead of in his CS level 2 form. Maybe I'm just picky, but small things like that annoy me.
Over all this game is still the best in the series and the next few games, although with a few new gimmicks and some new characters, still doesn't match the gameplay of number 3.