The above mentioned ending is not true.
Spoiler.
Excuse my fuzzy memory.
After Freddy is taken into the "real world" Jason and Freddy battle it out at Camp Crystal Lake. After a few kung fu fests with macheties and the like it appears as though Krugar comes out on top. Jason is in Crystal Lake. One must remember that water is Jason's kryptonite. Anyway Krugar comes after the two heros of the movie sans clawed arm. Jason, being the savior he truly is, comes up out of Crystal Lake and shoves Freddy's clawed armed through Freddy. I forget what happens to Jay at this point. Anyway Jay is out again and then turns his attention to our two heros. Our female hero, tormented by Freddy the whole movie, wields Jay's machete and screams, "Welcome to my world, bitch!" and chops off Freddy's head. Fred's head goes plunk into the lake.
After everyone is gone Jason emerges from Crystal lake with a machete in one hand and Fred's head in the other. The camera slowly pans in on Fred's head which winks at us as Jason strolls towards the camera.
The End. Roll credits with horrible generic rock soundtrack.
Glad to be of service!