Visible crew/equipment: When Schneider is being dragged along by two skipping ropes you can clearly see two wires attached to his shoulders which are actually pulling him along. (00:34:10)
Visible crew/equipment: In the kitchen, when Jesse's dad says "I want that room unpacked by tonight young man," the camera pans around the kitchen table. Look to the right of the screen, you can see the elbow of a crewmember come into view. (00:06:30)
Visible crew/equipment: When the bus closes the door and takes off you can see the reflection of the camera man in the bus. (00:01:05)
Visible crew/equipment: When the bus is driving along the rocky desert and the sky turns dark, you can see two stage lights reflected in the back windows of the bus. (00:03:00)
Visible crew/equipment: When the balls are all bouncing of their shelves, there is one closeup of three balls, one basketball that bounces off, then two white footballs which roll off the shelf. You can clearly see a wire attached to one of the footballs. (00:33:50)
Answer: He's a dream demon and uses his powers to torment Jesse in any way he could, including having claws or even Freddy himself burst out of Jesse.
Erik M.