I'm thinking of two different movies you might want to check out and see if they are the one you are looking for:

1. Slaughter High - there's a scene where a couple is electocuted whilst having sex
2. Return to Horror High. It had the "trickery" with prosthetics and I remember a fake decapitation as well. One of the main characters had blonde, curly hair as I recall.
   Worth checking out to see if they're the ones you're thinking of.
   http://werewolvesbeatingadeadhorse.blogspot.com/

Okay everyone, this is still bugging the life out of me. I remembered some more details that may help. I looked up Twice Dead, Popcorn, and Dream Demon and those weren't it. This movie has a couple having sex during which they get electrocuted by a lamp cord. Also, the two main ones were using makeup and prosthetics. I remember one scene where a girl with blonde curly hair was made to look like she was holding her decapitated head in her hands when she was underneath the makeup unconscious. I really appreciate the help guys. Hopefully somebody will remember this movie and tell me before my brain explodes from all the racking.

There was a UK film called Dream Demon released the same year, but I haven't seen it, so dunno if there's a shotgun suicide.
"Hey, look at that! She's not crazy, she's being chased by a cheetah!"

How about April Fools Day?
Although there's no shot gun/suicide scene.
Love Among the Pancakes.

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I think the movie you may be thinking of is Popcorn. It came out at around the same time and had very similar plot elements, ie bad dreams, cults, fire etc. I used to get these two movies confused all the time.
The plot was a bunch of film school kids hold a horror movie festival to earn money in a huge old movie house and they start getting picked off one by one.
This is the imdb page for Popcorn:
http://www.imdb.com/board/10102690/
If my answers frighten you then you should cease asking scary questions.

I think there was one called Sandman that was right around this time. Not very good though.

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Todd Bridges, eh? Sodid he "steal" the show?

Yeah I would say Twice Dead as well. That movie aslo had Todd Bridges in a small role.
Wow, Twice Dead.

would this movie happen to be twice dead? try looking it up on imdb, it was made in 1988 and i remember watching this movie on HBO years ago and it scaring me a bit (watching it later and finding it not scary at all) i remember a gang breaking into this old house and tormenting a brother and sister and they kill her cat and nail it to a doorthat was the worst part of the film in my opinion as i was quite young and loved catsbut one of the guys from the gang takes the sister upstairs and re-enacts a scene that happened at the beginning which involved a stage actor killing himselfi dont know weird. but let me know if thats any help!
stacy