Continuity mistake: When Edward is walking through the forest and the trees grab him the key he is wearing falls off his neck, but in the next couple shots you can still see it hanging on his neck.
Factual error: When Edward Bloom and Norther are about to rob the Texas bank, you can see the Texas flag over Bloom's shoulder. The flag is upside down, the white should be on top while the red is on bottom.
Factual error: When Edward Bloom is parachuting on his secret mission, he is wearing a British parachute harness.
Continuity mistake: When the house is burning we can see flames coming out of the window. However when Edward comes out of the house with the dog, we can see the window is intact.
Continuity mistake: When Will brings the canned drink to his father, the cushion at the foot of the bed keeps changing back and forth from smooth to wrinkled.
Factual error: Just before Edward Bloom parachutes on his secret mission during the Korean War (1950-1953), he looks at his wristwatch. The camera shot of his wristwatch shows the second hand advancing one entire second at a time, indicative of a quartz watch. The quartz watch would not be invented until 1960 by Bulova. Prior to that watches used an escapement movement in which the second hand "tics" at a finer and smoother rate.
Suggested correction: Remember that what we are seeing is William's mental picture of the stories his father told him. He never lived in a time without watch movement like that and therefore would think it moved like that.