Beginning in 1942, the Sherlock Holmes character as portrayed by Basil Rathbone was set in the then 'modern' Britain. Many Holmes purists have praised the first two entries in the series (produced by FOX), but dismissed the 12 features that followed. I for one was never an avid reader, and thus I appreciate these films as they are without any initial bias. In fact, the setting of World War II for this entry places it as a period piece with the British propaganda evident throughout the film. The execution of the modern Holmes is handled with much more care than the previous entry (Sherlock Holmes and the Voice of Terror)and fares much better for two reasons. First, Roy William Neil is on hand to direct (and would be for the rest of the series), and second although Holmes is pitted against the Nazis, the inclusion of Professor Moriarty makes this feel more like a battle of the intellect between two rivals. Lionel Atwill's performance has been criticized by many as being far inferior to that of George Zucco and Henry Daniel, but I feel as if its more the script than the character interpretation. Especially after seeing that Atwill was very capable of being much more diverse and enthusiastic in other horror roles. Basil Rathbone on the other hand is exceptional in this entry. He seems to be enjoying himself in the role of Holmes, but for that I blame the writing. For example: The introduction of Holmes in the Voice of Terror tries to hard to immediately establish how superbly intelligent Holmes is as soon as he is on screen, whereas this film shows Holmes' brilliant deductions, but also his shortcomings. Even in the climax Holmes initially has the upper hand, only to then have his blood slowly drained from his body. Now there are a few flaws in this film I thought I might point out. First the opening; Aren't the Germans fooled a little too easily? Maybe its just me, but the book seller just waltzes into the bar, says he's gonna get Tobel to not only answer his door after weeks of hiding, but allow him to come in and then go for a walk with him? What!? Second, Tobel certainly seems to put everyone around him in danger. Leaving the secret bomb parts with genius scientists. Leaving the note with his fiancé. Like what was he thinking? He was endangering them all. I thought he was this superb scientist trying to save England? And isn't the whole concept of 'use it on them before they use it on us' a little harsh. Obvious propaganda. Third, just how in God's name was Holmes supposed to fit in the bottom of that chest? Its really small! In fact the entire execution of Holmes finding Moriarty in the ex-con disguise really doesn't explain itself that well. I have seen this film well over fifty times and there are still parts like this that I find are executed in a very confusing fashion. Fourth, okay so Holmes finds out the first three scientists are dead then immediately assumes that Moriarty couldn't know the name of the fourth man because he wasn't dead yet. Well if Holmes didn't know the name then how could he assume that? The guy could very well have been face down in a lake. Lucky guess. Fifth, again with the confusion. When Holmes is supposedly dying on Moriarty's operating table, how can he recover so quickly? He sure was acting like he lost a few pints of blood, but not enough to stop him from saving the day. Now despite these flaws this is a highly entertaining film. The disguises are well done, the mystery of the dancing men is well done (especially the back-to-back scenes of Holmes and Moriarty each figuring out they were over analyzing them) and Dennis Hoey as Inspector Lestrade is always a plus. And as a final note, the interrogation scene still kinda bothers me, I always thought that was one of the most well done sequences in the whole film. Overall, this film holds a special place with me as it was the one that solidified my Rathbone as Holmes obsession. A classic. 7/10.