Other mistake: When Hamm turns off the TV at the beginning, there's no reflection of him, Rex who is beside him, or the remote. (00:06:58)
Other mistake: Near the end of the picture Al is racing to the airport and the toys give chase in the pizza truck. Spud jams the transmission into gear without using the clutch. (Hey, it's only a cartoon and Goyozas had great transmissions). The entire chase, however, would have been in first gear, but the engine runs at a normal speed. The truck bounces to a stop at the airport and then the engine stops. If they weren't using the clutch the truck and the engine would have stopped (stalled-out) at the same time. (01:12:55)
Other mistake: When the toys burst through the air vent into Al's office, the other Buzz's laser goes off with out him touching it.
Other mistake: During one of the outtakes between Mr. and Mrs. Potato Head, Mrs. Potato Head packs a set of toy "teeth". In the DVD subtitles for this scene, it's printed as if she said "cheese".
Other mistake: In the elevator shaft, Buzz and the other toys react to Zurg riding the top of the elevator car before he's even visible.
Other mistake: When the toys are in Al's toy barn, Mr Potato Head and Rex are walking together and Rex is reading about how to defeat Zurg. Mr Potato Head takes his ears out, presumably so he doesn't have to listen to Rex going on and on. Hamm then comes round the corner behind them in the car and Mr Potato Head turns around. He wouldn't have heard the car coming if taking his ears out meant he couldn't hear. (00:43:16)
Other mistake: When Al gets off the lift on the floor where Woody is, the toys also get off the top of the lift onto what would be the floor above, but end up on the same floor.
Other mistake: In the last scene with the baggage plane, Woody, Buzz, etc. are all near the plane when it takes off. Since they were following a big jet, they are well down the runway once it takes off. Later, without them backtracking the runway, another plane passes overhead very close, as if to land. There is no chance to land a plane if it touches down that far down the runway. You will not be able to stop in time.
Other mistake: When Hamm is pressing the remote control to get to Al's Toy Barn commercial, when he eventually lands on it, he still presses the remote several more times. The TV channel should have skipped the commercial again. (00:24:15)
Answer: It isn't Woody's holster that's blurred, it's his hand. And yes, the blurred effect is due to the video tape's degeneration.