Continuity mistake: When Zuko and Iroh are walking towards Azula's ship, the gold flame insignia on the imperial firebenders' uniforms switches directions between shots.
Avatar Day - S2-E5
Continuity mistake: When we first see Aang in the stocks, Sokka advises him to use his Airbending to escape and begins "imitating" Aang's kata. During one pose, we see Sokka is wearing the boomerang, or at least the sheath it was in, that he had to leave behind at the beginning of the episode. He wasn't wearing it before, isn't wearing it after, and doesn't actually get it back until the climax. (00:02:09 - 00:06:33)
Avatar Day - S2-E5
Continuity mistake: When the village leader switches the wheel of punishment to Community Service, it is on the space next to Boiled in Oil. However, all of the other shots of the wheel have another section in between these two.
Bitter Work - S2-E9
Continuity mistake: When Iroh draws the symbols of the Four Nations in the sand, there is grass on the left side of the Earth symbol in the close ups. In the shots that show all four symbols, the grass is gone. (00:14:25)
Continuity mistake: When Katara is trying to heal the wounded earthbender, she gives Sokka the idea to take down The Drill from the inside. Sokka then stops her from saying anything while she is sitting down, and she is wearing her necklace. When she stands up in that same shot, the necklace is gone, like they forgot to animate it. (00:07:35)
Chosen answer: Toph had Katara use it to send a letter to her parents. It never returned.