Revealing mistake: When young Norman Bates is spying through the peephole on his mother, who has brought home a man to the motel, we see him in the shower. Although the curtain is translucent, we can see he is wearing a black speedo.

Psycho IV: The Beginning (1990)
Plot summary
Directed by: Mick Garris
Starring: Henry Thomas, Anthony Perkins, Olivia Hussey, CCH Pounder
Norman Bates (Perkins) once again has been having more mother trouble. This time around he is invited to share memories of mom with a radio talk show host, because Norman fears that he may kill again, this time his beloved wife who is impregnated with his child. The reason why he wants her dead is because Norman feels that he cannot let the Bates' legacy continue with their child.
Norman: I know that in the cosmic scheme of things, little boys are small, but some days they can be... some days little boys can be giants.
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Answer: Norman is mentally stable in this film. Connie and Norman fell in love during his institutionalization. After being deemed sane and released, they were married. Norman is afraid to have children because he doesn't want to pass on his psychosis. Connie believes that with proper care, their child won't end up like Norman, and plans to become pregnant.