ANSWERS: 2
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when he made the ring he put all of his power into it.
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In the books he is defeated by Gil Galad and Elendil, Isildur just takes the ring afterwards. In the film I think they made it more dramatic for the screen. You could look at it by saying he put a great deal of himself (his soul if you will) into the ring and when it was taken he lost a great deal of his power. He didn't die as such, he was just greatly weakened. He doesn't die after the ring is destroyed, he is just weakened to the point he can never take any form again.
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