The last ghost is extremely tricky. He cannot be harmed with regular shots, and he will keep regenerating as you fight. You CANNOT let him touch you even once, or you will die and the game will be over. Your Spirit Stone will not revive you in this case.

Keep on the move until he teleports and reappears in a new spot. Turn towards him, draw your camera and keep circling him, taking care not to get hung up on any candles. You don't want to be TOO far away from him, or you won't get a shot opportunity.

An OK shot can be accomplished by staying a medium distance from him while circling until the fog around him thickens and he raises up into the air. This will present to you a chance to get in a Zero Shot, when your camera auto-zooms in on the ghost and turns red.

However, since he regenerates somewhat quickly, you'll want a much better shot. This requires a bit of extra bravery. Keep circling him, staying a bit closer than an OK shot, and when he stops moving, get as close as you can possibly get without being TOO close. Then, he'll raise his arm back and open himself up for a Fatal Frame shot, when a little red plus sign starts blinking at the top of your capture circle.

After you manage to get a hit on him, drop your camera and start running again, because he'll disappear and reappear REAL close to you if you don't keep on the move, and you can't afford to be touched. Also, if you notice that he's sending his little head spirits after you, keep moving no matter what. If they hit you, it will only give him an opportunity to grab you.

If you can keep up a good pattern of Fatal Frame shots, Zero Shots and any extra special shots you can manage, he CAN be defeated (unlike the first time you met him when your camera wouldn't even WORK).