Norman, having been declared "restored to sanity" by a judge in a hearing (0:04) does in fact seem relatively free of the psychopathology that plagued him in Psycho. Although you can never be really sure whether the voices are real or hallucinated (1:09) and whether he has committed the murders, until the end, it looks like at least one other serial killer may stalk the Bates Motel and the mansion.
Norman hears "Mother" call his name and tell him she will "show you what happens to bad little boys that poison their mothers... kill you," and sees her hand. (0:09)
Seeing the kitchen knife Norman reacts with a pause and stuttering speech. (0:21)
Voyeurism: Norman hasn't given up all his old habits. He watches Mary through a hole in the bathroom wall. Or is that really Norman? (0:36)
When Dr. Raymond drives up to check on his patient, Norman introduces him to Mary. (0:40)
Norman sees, or hallucinates, a woman in the window. (0:45)
Norman talks about apparent Dissociative Amnesia: "I always used to black out." (1:03)
Dr. Raymond visits Norman at the house. (1:14)
Norman tells Dr. Raymond his mother is not dead, "My mother spoke to me downstairs." (1:16), but Dr. Raymond arranges to have her body exhumed and finally Norman indicates he is convinced (1:19), but is he?
Dr. Raymond follows Ms. Loomis (1:25). He encounters Norman, who talks about his "real" mother. (1:28)
Mary tells Norm, "You're mad as a hatter." (1:34 )
Ms. Spool visits Norman, tells him she is his biological mother but gave him up to her sister to raise when, "the state put me away for awhile." (1:45) After he kills her we still hear what sounds like her voice. Is it Norman's intermetamorphosis or hallucination? (1:48)
Does Dr. Raymond pay the ultimate price for boundary violation?
Thus begins Psycho III.