Continuity: When the Grinch drops the sack, the sack lands next to him, but in the next shot, it is gone.
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Quotes
Officer: Hey, I recognize you. You're that black guy I saw on TV.
Peter Griffin: Yeah, that's me.
Officer: [Into radio] We have a stolen vehicle.
Peter Griffin: This is my...
Officer: [Into radio] Subject getting beligerant.
Peter Griffin: I'm not...
Officer: [Into radio] Officer down.
Trivia
When all the family have been replaced by actors in this episode, the actors are re-enacting the very first episode of Family Guy where Peter gets drunk and the family are eating their breakfast while Peter is lying on the table. See more...
Family Guy (1999) - 6 mistakes in "A Hero Sits Next Door"
Directed by Seth MacFarlane, starring Seth MacFarlane, Alex Borstein, Lacey Chabert, Mila Kunis, Seth Green (add more)
Updates: 
Series 5
A Hero Sits Next Door (season 1, episode 5)
Continuity: When Peter is saying how he hated the last few years of MASH, Mr. Weed just appears behind him in a shot change.
Continuity: When the policeman asks Lois to describe Peter, it shows a view through a scope of a rifle. However, when the shot changes and the cop says "I've got him", there is no scope on the rifle.
Continuity: During the scene where Joe is putting his trophies on the shelf, the size of the shelf in relation to the trophies changes.
Continuity: When Joe arrives at the orphanage when he's telling his story, the sign changes position and the writing changes on it.
Continuity: When Peter is improvising in the bank, the bag of money disappears in one shot.
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