Continuity mistake: During the opening credits, Kristen is making a Papier-mâché house, and in the process, her hands become covered in mixture. However suddenly both her hands are completely clean. (00:02:10)
Visible crew/equipment: When the boy who wanted to be a wizard is being chased in his dream, they are in a dark tight corridor, and Freddy releases a chair with spikes on it to chase after the boy, but if you look you can clearly see the chair is being pulled with strings. (01:12:50)
Continuity mistake: In the first shot when Freddy injects his syringe-fingers in Taryn's arm, the syringes are spread apart and not in line. In the next shot all the fingers are in line, next to each other. (01:11:30)
Continuity mistake: When Nancy gathers the group for their final group hypnosis, she sets up the pendulum in position, and it begins to swing steadily yet in some shots, it is completely still. (01:05:55)
Revealing mistake: When Kristen is running through the hallway with the girl in her arms you see that it is a doll. (00:07:00)
Continuity mistake: When the group hypnosis fails, Neil tells everyone to take five. Joey gets up and walks over to the water cooler. In the next shot you can see Joey get up once again. (00:45:30)
Revealing mistake: When Kincaid tears a pipe out of the ground to beat Freddy with, as he yanks it out you can see tape hanging off the pipe it was next to, showing they are fake. (01:19:30)
Revealing mistake: When Dr. Gordon is on his computer he is supposedly researching about Hypnocil, and acting as if he is searching and reading. Yet the information on the screen is clearly all written in word doc. (00:17:30)
Continuity mistake: When Freddy and Kristen are fighting in the boiler room, there are some barrels full of bones. Later they disappear.
Continuity mistake: When we first see the pig on the platter it has fruit surrounding it, and it has an apple in it's mouth. But when the pig roars at Kristen the fruit and apple have gone. (00:19:15)
Other mistake: When Taryn turns into a punk and walks down the alley way, you can clearly see Freddy's back along the bottom of the camera shot as if he is trying to pass the camera for the next shot. This happens as Taryn looks down the alley. However, if that was meant to happen, wouldn't she have seen Freddy, and not have been so scared when he approached her from behind?
Continuity mistake: When Philip is sleepwalking, he walks out of the room since the door is wide open. Yet in the scene where Joey is slamming on everyone's doors to wake them up, we see that the door to Philip's room is shut because Kincaid is seen opening the door.
Continuity mistake: When Kristen finds the pig on the platter you can see a champagne bottle standing right in front of the platter. Then as the camera pans around the room to Kristen, and you see the pig again, the champagne bottle is now laying down. (00:19:20)
Continuity mistake: During the opening credits, in some closeups of Kristen's hands, making the Papier-mâché house, you can see her with blue sleeves. However, her pyjama top is all-over pink. (00:01:20)
Continuity mistake: When Max turns off the lights, the switches are already down - he doesn't move them in any way (neither up nor down) and therefore hasn't made any actions that would alter the current lighting situation, however the lights turn themselves off anyway even though it is apparent the switches were not moved. Nobody else moved any lightswitches either. (00:25:50)
Visible crew/equipment: When Freddy lifts up the wizard kid if you look very closely you can see the wires holding him up. (01:13:35)
Visible crew/equipment: After attempting to talk to her father, Nancy runs away over to the opposite wall, upset. As she runs away, the cameraman and the camera shadow is clearly cast across the whole area. (01:00:15)
Plot hole: The TV-watching girl is killed when Freddy shoves her face first into a TV set. (one of the more creative movie deaths.) But the thing is, all the other deaths have been set up to look like suicides if not accidents - this one was obviously foul play, since there's no way she could have launched herself into the glass of a TV screen hard enough to break it. We see that her body is found this way, but they make no inquiry.
Suggested correction: Not all of the deaths were meant to be suicidal; Phillip and Kirsten were the only exceptions. When Will and Taryn were killed, it was in the dream when they wanted to help Kirsten but nobody was there to witness it and it was much later in the film. Also when Joey was caught by Freddy, he was only passed out but still alive. The one kid that cut his eyelids off was not only never shown but his death happened by his own doings out of fear for Freddy.
It doesn't matter if Jennifer's death wasn't intended to look like a suicide - she is in a locked ward and was the victim of a homicide. Yet there's no investigation.
Why would there be an investigation? Especially when she was the only one in the room - apart from Freddy - or maybe there were cameras there?
Continuity mistake: In the scene where Freddy turns into a puppet, he cuts his own strings with his knive fingers to get down and as he falls you can see some strings still attached to him, but when the shot changes and he lands on the floor, there are no longer any strings attached to him. (00:28:30)
Continuity mistake: Kristen is laying in bed, when suddenly a tricycle rolls into the room. In the first shot the tricycle rolls up right beside the end of the bed. In the next shot it has moved away. (00:18:40)