Deliberate mistake: When King Willie is confronted by the Predator in the alley the Predator approaches him cloaked stepping through the puddle of water. You can see his footsteps causing the water to splash up. However, you can see the water splash up and go through his foot. The Predator is only cloaked, not intangible so the water should have splashed upon his foot, not go through. Water against his foot would be visible too, even though he is cloaked. (00:47:45)
Deliberate mistake: Whenever the Predator is in camouflage, it does not have its signature dreadlocks. This is confirmed in the DVD extras as being too difficult to include them when creating the visual effects.
Answer: The predators are honour bound hunters, and as such they will only attack a target if it is capable of defending itself (i.e, if it is armed, which is why it doesn't attack the boy in the cemetary). Although the police outside were armed as well, the Predator presumably attacked the drug dealers because they were a harder target (as the police were outside he could have just sniped them from the roof tops, but he had to get relatively close inside the building) and as such, killing them gave a higher honour. The obsession with Danny Glover's character is probably because he is quite a brave and heroic person, similar to a Predator (the way he saves the other cop by risking himself etc.), so the predator may have been studying him for a while. There's also more honour in killing someone like that (as he'd be a hard target) than there is in just killing a random armed guy.
Gary O'Reilly