Continuity mistake: When Shrek is brushing his teeth, the mirror breaks. Later, when he returns to his swamp, the broken pieces are different.
Continuity mistake: When Shrek sits to eat his meal he has a slug on the left-hand side of his plate facing towards him. When he is invaded by the Three Blind Mice the slug is suddenly facing the other way.
Continuity mistake: When Fiona tears a piece of bark off a tree to make a door for the cave, the shape of the bark is different from the bare spot on the tree. (00:45:15)
Continuity mistake: In the scene where Shrek is tangling the dragon's chain around the pillars, you notice that when Shrek crosses his own path, he jumps over the chain, but the dragon doesn't, so it would've been tripped over by the chain. And to make matters worse, when you see the camera focusing on Shrek, right before he tells Fiona and Donkey to head towards the exit, you can see the chain is high enough to run underneath without having to duck. (00:39:20)
Continuity mistake: In the scene with Lord Farquaad and the Gingerbread Man, Farquaad crumples one of the Gingerbread Man's legs into dust, and some crumbs fall out of his hand. When he opens his hands again, there is no sign of any crumbs. The only way that this is possible is for every last bit of gingerbread to fall out of his clenched fist. (00:16:45)
Continuity mistake: When Shrek and the donkey are looking at the stars, in one shot Orion's Belt (three bright stars in a row) is right next to the moon, but in the next shot of the stars it's not.
Continuity mistake: At the end of the movie, the bouquet of flowers that the dragon has in its mouth switches sides. At first it's on the same side as donkey, then jumps to the other side in the wide shot.
Chosen answer: Who is "everyone"? The only person surprised he can talk is the one human who is processing the fairytale creatures for banishment, and this was used as a plot device to highlight a joke (between him flying and talking).
MovieFan612 ★
Fiona also says "it talks", after he "saves his ass."
To be fair, she was locked in a castle for the majority of her life, so she wouldn't know that donkeys would be able to talk.
And yet he wasn't the only one surprised by it; watch the scene again and Fiona was surprised, too.