Continuity mistake: When Kramer is telling the fantasy camp story to Jerry and Elaine, the suitcase in the background is open different amounts during different shots. (00:09:55 - 00:10:40)
Audio problem: When it cuts from Elaine to Kramer, the audio of what Kramer says is audibly split, as it sounds like he was speaking previously but it was cut off. (00:11:30)
Answer: Composer Jonathan Wolff used a synthesizer, although in seasons 7-9, a real bass is used in addition. Wolff also recorded himself making hundreds of mouth noises, pops, and slaps to add to the synthesized bass licks so that each episode has a different theme. The only real "back-story" is Jerry Seinfeld was having trouble coming up with a theme song and talked to a friend who happened to know Wolff. They wanted to avoid that cheesy late 80's sit-com theme song and Wolff came up with what we enjoy now. Jonathan Wolff has also talked about this further in interviews, recently Reed Dunela interviewed him, so for a fuller account of his story; check out "The Wolff of 116th street".
Bishop73