Continuity mistake: In the junkyard, after Ludo pulls Sarah out of the garbage room, Sir Didymus says "M'lady look, we're almost there...." and then there is a shot of the gates to the Goblin City. The junk which sits around the gates to the Goblin City is piled rather low. However when Sarah, Ludo and Sir Didymus arrive at the gates, the junk to the right hand side of the gates is now piled up much, much higher. (01:11:30)
Continuity mistake: When the gang encounter the large robot, as the robot forms together, you can see there is a big axe leaning up against the wall, to the right of the robot. The robot then bellows "Who goes," for the first time. Then it cuts to Sir Didymus barking and then in cuts back to the robot taking two steps forward - in this shot, the giant axe which was propped up against the wall, has gone. It then returns in the following shot. (01:12:50)
Continuity mistake: When Sarah and friends are confronted by the massive metal robot, smoke drifts out from behind it. Then in the next shot, the smoke has totally disappeared, and more smoke then starts to drift out once again. (01:12:50)
Continuity mistake: Sarah sits in her fake room, picks up the book, 'The Labyrinth' and is seen in her reflection. She then says, "Through dangers...take back the child you have stolen." When the Junk Lady asks, "Don't you like your toys?" and also when she gives Sarah the music box, Sarah is seen. In each shot the things behind Sarah's shoulders and in front of her are different, yet, the Junk Lady did not add anything between these shots. (01:13:10)
Continuity mistake: This can only been seen in the letterbox version of Labyrinth. After Sarah says, "It's all junk," the garbage lady grabs a ballerina music box and says, "Well what about this, this is not junk," and hands it to Sarah. She takes it, then for a second it cuts back to the garbage lady. The music box is still sitting on the table after it was handed to Sarah. (01:13:45)
Continuity mistake: When the Junk Lady says, "Well, what about this? This is not junk," as she hands Sarah the music box, Sarah turns in her chair, brings the music box close to look at it and the toys piled behind Sarah are higher than her head. After a close-up of the Junk Lady, in the next shot of Sarah, she is still bringing the music box a bit closer to her as she turns in her chair and the toys piled behind her are now only up to her shoulders. (01:13:45)
Continuity mistake: As Hoggle pushes the head of the big metallic robot off, it lands close to the left foot of the robot. But when the goblin is thrown out of the robot, the metal head is now by the right foot, nearer to the spikes. (01:13:55)
Continuity mistake: Sarah is rescued from her fake house and head towards the gates to the Goblin City. Hoggle is seen poking his head out in the wide shot and then a close-up. The things around Hoggle change in the two shots. (01:14:25)
Continuity mistake: When Sarah, Hoggle, Ludo and Sir Didymus enter the center of the Goblin City, a cannonball is fired at them, but it misses and it hits a clean portion of one house's white wall. However in a previous shot, the same portion of wall was covered in a black grubby substance. (01:16:40)
Continuity mistake: In the Goblin City, the guards emerge from behind the walls, equipped with weapons and ready to fight. Sarah, Hoggle and Ludo run away, but Sir Didymus turns and yells "Right, charge!" But in the next shot Ambrosius cowardly runs away. Between these two shots, the actual clothes themselves which hang from the line above them change, and their positions differ as well. (01:17:25)
Continuity mistake: When Sir Didymus is being chased in the goblin city by the guards, the distances between the guards and Didymus, and the actual guards chasing him, changes frequently between shots. (01:17:30)
Continuity mistake: When Hoggle jumps off the huge metallic robot, we see him land parallel to the foot of the robot as he lies on the ground. When Sarah runs to him, Hoggle's head is now right up against the foot, while he lies there. Yet in the next shot as Sarah asks if he's alright, still lying on the ground, he is not near the giant foot. (01:17:50)
Continuity mistake: At the gates to the Goblin City, when Hoggle jumps from the metallic robot, Sarah runs to his aid. In that overhead wide shot and in the following shots, her hair changes as she speaks with Hoggle. (01:17:55)
Continuity mistake: The house that Ambrosius runs into has a small metal pole with thick rope tied around it very loosely. However when Sir Didymus is at the door, telling him to unlock it, the rope is now tied around the metal much more securely and is differently positioned. (01:19:10)
Continuity mistake: When Sarah shouts, "Quick, this way!" and then Sir Didymus shouts, "No, not that way!" the hanging sign with the hammer hangs crookedly by only one chain. However, two shots later when Sir Didymus shouts, "You're going the wrong way!" the sign hangs properly from two chains. Then later, when the three Samurai Goblins jump in front of Sarah and the rest, the sign's chain is broken once again. (01:20:00 - 01:25:40)
Continuity mistake: When Ludo calls the rocks in the Goblin city, there is then a wide shot of Sir Didymus standing by a house door, surrounded by soldiers. Between this wide shot, and the next closeup, the soldier's spears go from not being pointed at Didymus, to being pointed right close to him. The spears being pointed at him in the closeup also are different to the spears that belonged to the guards in front of him too (check the flags hanging at the end of the spears.) (01:20:35)
Continuity mistake: Sir Didymus (riding Ambrosius) is in front of the building with the hammer sign in Goblin City, when he quickly rides away shouting, "No. Not that way!" He is at least three houses away from the building with the hanging hammer sign, when it cuts to the many Goblin guards chasing him. Then, in the third overhead shot, Sir Did rides past that same building with the hammer sign - and now things like the sharpening stone table, the cart with baskets, etc., differ. (01:20:40)
Continuity mistake: When the soldiers start to fall, as the rocks start rolling in the Goblin city, in one wide shot Didymus is laughing and has both hands at his chest, with no staff. Then in the following closeup of him saying "Next time surrender" his left hand his out by his side, holding his staff. (01:20:55)
Continuity mistake: When Sarah, Ludo and Hoggle wait for guards to run by, she says, "Be careful. Okay," and the houses around them are visible. Later, when the six Goblins are blasted up in the air, they are in the same area, but this time there are two large planks of wood mounted on the home's stone wall to their right, under the small semi-circular window. (01:21:00 - 01:24:30)
Continuity mistake: When Toby catches the crystal ball Jareth throws, Toby is sitting right by the edge of the stairs, Sarah then shouts 'Toby!' then in the next shot Toby is sitting further away from the stairs. (01:25:10)
Answer: They are real. This is seen when Jareth turns into an owl and Sarah sees him fly out of the house. Further proof of this is when everybody that Sarah met were in her room and Jareth was looking into her room before flying off.