Revealing mistake: In the scene where Chitty is taking off from the castle, Caracticus looks down at the toymaker and Peter and says, "Bye bye". If you look closely, right in front of them, a boy runs across holding a stick he stole from one of the cavalrymen. He is waving it around and you can tell it's fake because it flops around like rubber. (02:16:50)
Revealing mistake: When Caractacus smashes the tower of cups, the last one is obviously glued onto the saucer.
Revealing mistake: During the "Toot Sweets" number in the factory, the cart with the candy trays move freely, however later on when they start spinning on them in circles (right after Jeremy gives Mr. Scrumptious another sweet) you can see each one is spinning due to a pole holding it. You can see it just under the bottom trays.
Revealing mistake: When Chitty crashes at the car race, it jumps over a small berm and a line of fire blows up in front of it before the car hits it's mark.
Revealing mistake: In most of the shots where they are flying over Vulgaria, if you look closely you can see their shadows on the screen behind them.
Revealing mistake: During the "Grow the Roses" number, there are several shots of the wheels of the Baronial car, looking normal. In the final shot of the scene (when the car falls apart) square supports disappearing into the floor have suddenly appeared on the axles, as part of the mechanism to support the car when the wheels fall off.
Revealing mistake: When the Vulgarian boat is chasing Chitty in the sea, Truly, Jeremy and Jemima are obviously dummies in the far shots because you can see them flopping about in the car.
Revealing mistake: In the baron's birthday party scene Mr. Potts is dressed in a rag doll costume. In some shots, you can see the wire that holds him up when he jumps.
Revealing mistake: In the scene on the beach between Truly and the children, waves are seen lapping against the sand castle but not washing it away - it's made from something more substantial than compacted sand.
Revealing mistake: In the "Truly Scrumptious" song, the children draw a smiley face in the sand. When they run across to make the smiley face, you can see that it has been created beforehand.
Answer: Dennis Waterman.