Continuity mistake: When Homer's head gets caught in the middle of the draw bridge, a yellow stripe can be seen down the center of the bridge (where Homer has become stuck). However, in the closeup of Homer being hit by the cars, the stripe has disappeared.
Continuity mistake: Bart turns the door handle to the joke shop and a boxing glove comes out through the door and hits him. But when he opens the door there is nothing on the other side for the glove to come out of.
Answer: Willy referred to an encounter he believed he had with actual aliens, while Wiggum thought he was referring to the arcade game.