Continuity mistake: When Velvet and her mother are sitting and talking in the attic, her mother pours some gold coins into Velvet's lap. Velvet is sitting back on her feet, but a few seconds later, she raises up on her knees to hug her mother. The coins should go spilling everywhere, but we never see or hear them.
Continuity mistake: In the first scene in the schoolhouse, it looks like the youngest girls are sitting in the front row, and the girls get older each row that goes back. (Velvet is in the second row and her sister, who's in her last year of school, is in the back row and the girls in each row apper to be the same age.) But in the scene the following winter - the next school year - Velvet is sitting in the first row.
Continuity mistake: When Velvet and Mi get in the cart to go to Mr. Edes's farm, Velvet is sitting on the left and Mi is sitting on the right. But when we next see the cart, Velvet is on the right and Mi is on the left. They only have the one delivery to make, and it's not established that they have any reason to have gotten out of the cart.
Continuity mistake: When Velvet jumps in front of the Pie at the beginning to keep him from running away, she says "Whoa Pie." But Mr. Edes has not yet called the horse a pirate which leads to his unusual name. Given in the film the horse is chestnut-coloured, she can't be referring to his colour.
Revealing mistake: When Velvet and Mi are talking to the jockey in the pub, there is a blackboard behind him listing the menu. However, all the writing is backwards. The film negative apparently got flipped, in this print at least, resulting in a reversed image. This is the only scene where reversed lettering is seen.
Plot hole: After The Pie runs away and breaks the delivery cart, Velvet jumps on Miss Ada (the family's cart horse) to chase after him. It seems very convenient that Miss Ada, whose only job is to pull the cart, is standing untied in the yard wearing a riding bridle, just waiting for Velvet to jump on.
Continuity mistake: After Mi returns the money he stole, he takes a carrot back to the white horse in the barn. The horse pricks up its ears and sticks its nose out for the carrot long before Mi is actually close enough for the carrot to be seen or smelled - obviously not the first take.