Revealing mistake: When the toys are watching Woody being stolen the games machine on top of the TV doesn't have its controllers plugged in, but Rex was playing earlier with a wire coming out of his controller, which clearly wasn't actually connected to anything.
Toy Story 2 (1999)
1 revealing mistake - chronological order
Directed by: John Lasseter, Ash Brannon
Starring: Tom Hanks, Joan Cusack, Kelsey Grammer, Tim Allen, Jim Varney, John Ratzenberger, Laurie Metcalf, Annie Potts, Wallace Shawn, Wayne Knight, Don Rickles
Continuity mistake: When Jesse and Bullseye are at Andy's house, the letters on Bullseye's hoofs are written so that when it says Dany, the A is on the front left hoof, D is on the back left hoof, the N is on the front right hoof, and the Y is on the back right hoof. When he switches the letters to Andy, the A and Y stay on the same hoof, but the D and N switch hooves. (Note, our left and right, not Bullseye's.). (01:22:40)
Buzz Lightyear: I'll never give in. You killed my father!
Emperor Zurg: No, Buzz. I *am* your father!
Buzz Lightyear: NOOOOOOOOOOOOOO!
Trivia: If you pause the film when we first meet Mrs. Potato Head, you can see that she's reading "A Bug's Life". (00:05:45)
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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.