Continuity mistake: At Rick's funeral, Debbie gives Alice her spike bracelet. The spikes are flat and there aren't that many of them, but at the end when Alice is getting decked out to fight Freddy she pulls the bracelet out of her drawer, and the spikes are very menacing looking and there are more of them. (00:55:25 - 01:13:20)
Continuity mistake: When Sheila's pen bleeds, she puts the pen down, then smears the blood around her physics test. Between shots, the way the blood has smeared changes. (00:42:45)
Continuity mistake: When Alice is holding onto the edge of the wall in the cinema because she is being blown to the screen, between shots Alice's shoe flies off of her foot twice. (01:01:45)
Continuity mistake: When Kristen meets the little girl drawing the chalk house, between the two shots before it starts raining, the chalk drawing changes. (00:02:35)
Continuity mistake: When Freddy push Kristen into the quicksand you see only her hand sticking up. Then in the next shot suddenly you see her hair. (00:35:00)
Continuity mistake: When Sheila's pen starts to bleed, she puts it down on her desk, with the lid off. In the next shot there's a lid on it, and the pen has also changed it position. Her inhaler has also changed position. (00:42:40)
Continuity mistake: In the scene where Debbie's arms come off you see two right arms fall to the ground instead of a left and a right. (01:06:35)
Continuity mistake: In her dream, Kristen is bitten by Kincaid's dog on her left arm. When she wakes up, the wound is on her right arm. (00:06:25)
Continuity mistake: After Kristen first falls into the quicksand, the shot changes, and a palm tree appears which wasn't there before. (00:34:35)
Continuity mistake: When Kincaid's dog runs under the bed, it kicks a carpet away from the bed. Beside the bedpost there is a white sock. When it cuts, the sock has moved onto the carpet. (00:05:15)
Continuity mistake: When Freddy is pushing down on the weight Debbie is holding, in one shot Debbie is holding the middle of the weight with both hands, then when the shot changes she is holding the weight with one hand either side. (01:06:10)
Continuity mistake: When the restroom door closes on Rick, elevator buttons can be seen on the wall. In the next shot, the elevator buttons are coming out of the wall.
Continuity mistake: When the nib of Shelia's pen starts bleeding on her test, the pool of blood on her paper moves between shots. (00:42:30)
Continuity mistake: When Kristen falls into the quicksand, there's a shot of her from behind, and her back is covered in quicksand, although her back hasn't been in the sand yet. (00:34:35)
Continuity mistake: When Kincaid falls backward out of the chair we see his dog sticking its head out under the bed. When it cuts to Kincaid falling through the wall, the dog isn't under the bed. (00:05:20)
Continuity mistake: When Alice is in the cinema she has a drink of coke. The Coke has a plastic lid on it. But when Alice turns around to investigate the strong winds, there is no plastic lid on the Coke. Then in the next shot the plastic lid is back on it. (01:01:10)
Continuity mistake: When Freddy is reaching out to take Sheila's glasses off, you can see that the palm and index finger of his hand aren't scarred at all from what was supposed to be an all-consuming fire. (00:43:55)
Continuity mistake: When Dan is talking to Alice there is a piece of paper in front of him on the table. In the next shot it's gone. (00:47:40)
Continuity mistake: When Dan is wheeled into the operating room, we hear a respirator machine going in the background. Yet he's fully awake and not hooked up to any breathing equipment when he's being brought in. A machine would not be going like that unless the patient was fully under and intubated.
Continuity mistake: When Kincaid's dog is getting ready to pee it has its tail between its legs. When it cuts to the fake dog peeing flames, the tail is standing up. (00:15:40)
Answer: As Kristin was being burned to death in the boiler, she passed her ability to pull other people into her dreams to Alice. This enabled Freddy to get new victims.