
The Story
It starts with the Kravens gearing up and getting ready for the rest of the hunt. Vladmir, Kraven's son who has been resurrected into some kind of beast at the cost of Mattie's life ( see Amazing Spider-Man 634 ) seems to be slightly sane in that he understands what his family says and isn't running around like a wild animal.
Spidey is still over at Mattie's abandoned apartment with Arachne, speaking to the living rotting corpse of Ezekiel. Ezekiel tries to warn Spider-Man of what is coming. Apparently, the Spiritual mother of spiders has allowed Ezekiel to rise from the dead to warn Spider-Man of what is happening. Ezekiel claims he is here to help Spider-Man build an army of Spiders.
Meanwhile, Michelle returns to her apartment which was filled with blood stains in the last issue. Michelle is surprised to see the place so tidy. Obviously Kaine cleaned up the mess he made in the apartment.
The scene jumps to Anya Corazon - Spider-girl ( or Arana), who is being chased by the beastly Vladmir. Spider-Man jumps in the scene to help her fight off Valdmir. Spidey, still dizzy from his swine flu and etc, finds himself unable to protect himself.
Fortunately Kaine comes to the rescue, dressed as Peter Parker. Kaine pretty much shaved his long beard and all. Together, the group of Spider people fight off the Kravens for a while. Unfortunately for them, it doesn't turn out so well. Arana and Arachne get caught and taken away. Kaine tries to talk some sense into Spidey telling him not to go after them and save himself.
Peter doesn't listen and walks off. Ezekiel then appears and tells Spidey that he needs back-up, namely Venom and Anti-Venom. Meanwhile Kaine still watches from a distance. Spider-Man follows Ezekiel through some misty place and comes out of the fog to meet all his greatest enemies at once.

Apparently Ezekiel was not Ezekiel at all, but was in fact, the Chameleon. With no energy to fight, Spider-Man makes a run for it. He keeps running until he falls into a pit.
As the Kravens chase their prey, a fully energized Spider-Man comes out of the sky and starts fighting them off. Spidey seems to have the upper hand, until he gets shot. Things go downhill from there, and he eventually gets killed and sacrificed. In the final scene, Kraven rises from the grave.
The second story
As if nobody can already figure out what just happened in the first story, they make it even clearer in the second story - featuring Kaine. The story continues from the second story in ASM 634. Kaine has been hired to kill Kraven. Throughout most of this story, Kaine is contemplating if he should take the job. He now stays in Chicago with an old lady and is running out on cash.
One night, while starting a fight in a bar, Kaine gets a vision that is not explained in the comic. Well, it is briefly suggested that in his vision Kraven kills him. Kaine returns home to find the old lady dead. He heads off the Kraven's place to finish the job.

Upon saying this, Kravens face changes. Kaine takes the opportunity and tries to kill Kraven, but is only met with a counter-attack.
Thoughts
Lets think about this logically. The book is called - the Amazing Spider-Man. So Spidey can't have died there. Obviously Kaine, who has now shaved and was last seen spying on Peter, changed into a Spidey suit and decided to follow his brother.
The real Spidey is still in that pit he fell into and probably unconscious. Also, in a short conversation Kaine had with Madam Web before he died, he mentioned that he was not worthy to live. At first Madam Web does not understand, but it is implied that she knew what had happened later.
The second story further confirms this as Kaine, once long ago, had a vision that he would be killed by Kraven the Hunter. Unlike with the case of Mattie Franklin, this death of Kaine is much more honorable, and easier to accept. Kaine has pretty much been a crook his whole life. The best way for him to die would be by doing something good. Unfortunately he had to die quite a brutal death. So long to one of my favorite characters. Overall, a very very good issue.