Continuity mistake: The little girl who was missing after falling off the cliff, suddenly shows up again after the evil woman is struck by lightning and is seen standing with the other children to react. But then she's gone again only to then show up with Santa.
Character mistake: After Santa gives the children new clothes, Ray says that he and the mother can now raise the 9 children. The mother points out that they only have 2, but he points to the group of orphans to include them. However that makes only 7 children.