Drifting through the bright, cheerful skies, Sonic the Hedgehog, in his biplane "Tornado", finds a beautiful island down below, filled with lush green fields and hills. Smoke coming from the plane's engine forces him to take a landing on the island. As it turns out, this is West Side Island, full of legend and mystery, including tales of an ancient civilisation. The stories say that this civilisation relied on seven powerful stones to advance their society, until a fraction of them decided to use the stones for their own evil purposes. The gods disapproved, and took the stones away, locking them somewhere on this island.
While running across the island one day, Sonic realises he's being followed. He discovers that his pursuer is none other than a small kid fox, who immediately dashes out of sight upon realising he's been noticed. Sonic ignores him and carries on, but the fox became determined to catch up with him. He had two tails instead of one, and if he whirred them around like a helicopter, he could actually keep up with Sonic, and even fly in the air for a short time. Sonic was impressed with his determination, and decided to let him tag along, and soon made friends with him. The fox's name was Miles Prower, but everyone on the island preferred to call him Tails, due to his unique ability. Tails also has a love of machinery, and became fascinated by Sonic's plane when he found it on the beach one day.
Suddenly, all havoc broke loose when loud explosions began to occur in a nearby forest. This startled Sonic, who was asleep in the cockpit, and he raced over to investigate, with Tails following closely behind. Huge columns of flame rose into the sky, setting the forest on fire, and armies of robots emerged, spreading out across the island. Sonic immediately recognised them as being the work of Dr. Eggman, whose voice began to echo across the forest. He's back, and this time he's got a much larger scheme in mind. The insane scientist believes that the legends of the island speak of none other than the seven Chaos Emeralds, which Sonic successfully prevented him from obtaining in his last attack on South Island. Eggman believes all seven have returned to this island, from where they originally came, and he has plans to collect the entire set this time, in order to power his ultimate weapon; the Death Egg! A huge, round satellite orbiting the planet, capable of immense destruction. Sonic immediately races into action with Tails not far behind, his loyalty to his friend proving stronger than the fear of heading straight into dangerous territory...
A few things to point out. Firstly, the US version of the storyline fails to account for the legend of West Side Island, and even its name. It also doesn't mention anything about Sonic arriving in the Tornado, or the explosions. Again, Eggman is referred to as "Dr. Robotnik", whose intrusion is somewhat more subtle. Like in Sonic 1, he's been snatching the residents of the island and putting them inside his devilish badniks, though still has plans to use the Chaos Emeralds to power his Death Egg, and already has control over factories and refineries on the island. Notice that there are now seven Chaos Emeralds, as opposed to six in Sonic 1. This number remains for all of the following main games that they feature in, and it's commonly believed that the seventh one was lost, until now. There's also a debate over whether Tails is supposed to be a fox with a freaky mutation, or a kitsune, which is a mythological creature in Japan that looks like a fox, but has multiple tails. It supposedly gains a new one every hundred years, which would account for the twin tails, but not his supposed age of only 8. Lastly, those legends of West Side Island do sound intriguingly similar to those of Knuckles' lost race of people, detailed in the back-story of Sonic 3, and the underlying storyline of Sonic Adventure, later on in the series. Hopefully you spotted that yourself!