Watched Eureka Seven AO for the first time. While I liked the prequel very much, this one is shit. Okay, "The World is wrong" is often stated in in this but srsly... it's just an excuse for horribly messing up the Story.
Verdict: If you liked Eureka Seven, don't watch AO. You'll regret it.
world is more or less its own parallel universe, because at the end if you remember, it went from multiple time laps into only 2 time laps, the one Eureka and Renton entered and the one where Ao stayed in. all i have to say is, it was Good if it was its own Series, but it became pretty bad as a Sequel/Prequel due to the entire time travelling part.
PS, if you didn't like the Sequel, Do not watch the OVA of Eureka Seven, it will make you punch children mostly the children, forgotten in AO.
I wouldn't have a problem with the parallel world thing itself if the story would be right. Sadly it seems to be intentionally confusing on various levels. The people are superficial, most of the time you don't know if their interactions are relevant to the story or simply a useless timefiller. Some hardcut scenes and sudden unexplained story jumps between episodes.
It feels like the last Episode of Evangelion streched to a whole series.