Audio problem: When Scott is making a distraction, he says, "Well, this show stinks." But his mouth is saying, "Well, this show sucks." Done in order to keep the G rating, I presume.

Revealing: When Lucy is going into the snow globe collection there is a spark reflected in her eye that goes over her eye lid, which shouldn't, that is a FX Problem.

Revealing: When Neil is teaching Yoga exercises to the elves a first close up shot of one of the elves (the Asian looking one) shows he doesn't have pointed ears like the rest in the group.

Plot hole: It is revealed in this movie that there is an "Escape Clause". However, if you look back on the very first Santa Clause movie it was established that being Santa Claus is a lifetime commitment or in the clause's terms "unable to do so, by either accident or design". Hence, the instruction that his coat must be worn by someone else in case something happens to him so that someone else will always carry on Santa's work. Scott already tried in the first movie to get out of the responsibility but the clause doesn't permit him to do so.