Factual error: At the conclusion, the island gets blown apart by a volcanic eruption while the children and the hospital staff watch from aboard a schooner off the coast. A volcanic explosion of this magnitude would have created pyroclastic surges that would overtake the boat, killing everyone aboard. (During the 1883 eruption of Krakatoa a pyroclastic surge stretched 30 miles to the coast of Sumatra, killing residents of some villages along that coast before the explosion that triggered the devastating tsunami (which killed over 30,000 people).
Revealing mistake: At the beginning of the movie, Talua is depicted as an isolated island in the South Pacific. Several shots show other islands in the movie. Many segments were shot in Hawaii (Maui) and you could see the Island of Hawaii in the distance.