Abstract. We show, in full generality, that Lusztig's a-function describes the projective dimension of both indecomposable tilting modules and indecomposable injective modules in the regular block of the BGG category O, proving a conjecture from the first paper. On the way we show that the images of simple modules under projective functors can be represented in the derived category by linear complexes of tilting modules. These complexes, in turn, can be interpreted as the images of simple modules under projective functors in the Koszul dual of the category O. Finally, we describe the dominant projective modules and also the projective-injective modules in some subcategories of O and show how one can use categorification to decompose the regular representation of the Weyl group into a direct sum of cell modules, extending the results known for the symmetric group (type A).