As I step into the ruins, I have to face this dude and I've died a couple of times so far.  I am beginning to see the light, but what is the easiest way to going about killing this guy?

Use your own knife of course. =P

Knife does major damage to Krauser, and in the Wii version, Knife search makes him helpless, just keep waggling the
remote. If that feels to cheap, Knee shot with the Magnum, then head shot. In these eariler segments where he's at
a distance, it's usually just best to move forward and force him to come to you. You can also shoot his gernades while 
he's holding him to stun him. 

Use the shotgun to scare him(Be careful and dont let him get to close)...

Or use the knife (But only if you feel lucky), avoid long range combat, and try to get to the pieces fastest as possible.

When you get to the final battle use the knife in his foot and the use it in his face... thats all really.

I haven't played it in a while and remember having difficulties with the guy, but I think shooting him first in the legs and then in the head worked pretty well.

Actually think my roommate managed to beat him without getting hit a single time after getting the timing right.

using the knife is best, though on pro difficulty i found it harder, so i just used the butterfly to his legs then head.

just use the knife, save ammo.

Great, thanks... I burned up a lot of ammo on the previous boss and their hasn't been much in any of the barrels and such. I'll try the knife first as I don't seem to have trouble dodging and waggling. At this point I just want to finish it and knifing him to death in a wagglefest won't feel cheap, lol.

i beat him on first try. Switch between shotgun at far range and knife him when he comes close.

^ i found on my first go i didn't die in all the places i seemed to on subsequent run-throughs. First time i did the krauser knife fight cutscene i survived, first time against krauser on the bit kn is at too, yet those are the places i die most.

@kn, ammo levels dont get better for you after krauser, basically from when you jump into garbage [spiky regenerators] until just before the end of the game my ammo was low, i never ran out [maybe 1 weapon ran out occasionally] but the ammo levels are constantly in your mind for that bit of the game.
never really got scared about health levels, there seems to be a lot more health in the game than needed [compared to REmake, which probably had more herbs in but i got hurt a lot more] edit: in regards to the knife fight cut scene, i was really pissed off for my second round 'cos the commands had changed, i was waggling when i should have been pressing A+B

finish the game and use the handcannon fully upgraded.