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)
Continuity mistake: When Nancy is talking to Max about seeing the kids one last time, the front shots show her standing straight up. But the shots from behind she her leaning against the wall. (01:04:10)
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)
Continuity mistake: In her dream, Kristen does a back flip, and Freddy lungs at her, misses, and punches the wall. Yet in the next closeup Freddy rips his knife fingers out of the wall, as if his hand went straight into the wall. (01:09:25)
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)
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)
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)
Continuity mistake: When Neil and Lt. Thompson gets out of the car the front lights switch from on and off between shots. (01:16:00)
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)
Continuity mistake: When Freddy and Kristen are fighting in the boiler room, there are some barrels full of bones. Later they disappear.
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.
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: The day Kristin is admitted into the hospital, she is screaming and fighting with the staff. She then cuts Max on his right inner arm with a scalpel. In the next scene where Max is introducing the kids to Nancy, Max has a very small band-aid where Kristin cut him yet the band-aid is on the outer part of his arm by his elbow.
Factual error: This film begins with a foreboding quote attributed to Edgar Allen Poe: "Sleep. Those little slices of death. How I loathe them." Problem is, Poe never wrote any such thing (and neither did Henry Wadsworth Longfellow), despite decades of misquotes and misattributions across the Internet. So, where did the quote actually originate? The answer is Walter Reisch, lead screenwriter on the 1959 film "Journey to the Center of the Earth." In Reisch's screenplay, the antagonist Count Arne Saknussemm is urged to get some rest, to which he memorably replies, "I don't sleep. I hate those little slices of death."
Continuity mistake: In the opening scene, Kristen gets a spoonful of coffee and as she puts it in her mouth you can see there's no coffee on the spoon.
Continuity mistake: When Jennifer's head goes into the TV, the antennas on top are gone just after Freddie's arms come out of the TV, but in the next shot they are back.