Continuity mistake: When Sarah goes into Toby's room, and picks up Lancelot, she puts the teddy on her parents' bed next to her, then sits down. In the next shot, the teddy is behind her on the bed and it can be seen when she stands up. (00:07:00)
Continuity mistake: When Sarah wakes up in the junkyard, there is a wide shot, then a closeup of Sarah holding the peach. Between the two shots, the way Sarah holds the peach changes. (01:07:10)
Continuity mistake: When Ludo is hanging upside down, while the nasty little guards taunt him, the line that is tied to the tree root is seen and the knot end is different throughout these shots. (00:41:55)
Continuity mistake: When Jareth is singing "Dance Magic," he is throwing Toby into the air. In one throw, Toby's back is facing the camera, but in the very next shot, when Toby lands in one of the Goblin's arms, he is now facing the camera. (00:25:05)
Continuity mistake: When the goblins are roaming around and sneaking about in Sarah's father's bedroom, in one shot when we see a small, black, furry goblin jump out of the chest which sits at the end of the double-bed, the rocking horse, which sits next to the green chair, by the double doors, has actually disappeared. It's clearly back, once the owl has burst through the doors. (00:11:10)
Continuity mistake: When Sarah arrives home with Merlin, she talks to her mom for a while. The white straps that hang down from her flower headband alternate from hanging in front to behind her shoulders during the shots. (00:04:40)
Continuity mistake: When Sarah places Toby back in the crib, the lipped door jamb clearly has a strike plate. After she says, "I wish the goblins would come and take you away..." she shuts the light, and walks out. When Sarah turns around in the hallway to go back and check on Toby, there is no strike plate on the white door jamb - and it should be visible. (00:09:40)
Continuity mistake: When Hoggle is taking Sarah out of the oubliette, the lamp he lit goes out quickly just as they exit; yet in the shot of Sarah immediately after she comes out of the doorway, we can see behind Sarah into the oubliette and the lamp is still lit.
Continuity mistake: When Sarah arrives home, her hair is tied back in a barrette, with no loose hair hanging from it. As soon as she walks inside, there is suddenly a lot of loose hair which has fallen out of the barrette between shots. (00:04:55)
Continuity mistake: As Sarah runs up to the porch, her mom says "Oh, really!" and she is holding some clothes below her waist. But in the next shot, she is holding them up by her waist. (00:04:40)
Continuity mistake: When Sarah wakes up in the junkyard, she the converses with Agnes the Junk Lady, and then Agnes gives her Lancelot. During this scene between different shots, the junk which is piled behind and around Sarah noticeably changes. (01:07:50)
Continuity mistake: When Sarah is running, just before she reaches the pond Hoggle is peeing in, you get a wide shot of her running. You can see that the Fairy spray beside Hoggle's feet is not there at that point, but appears a few shots later. (00:14:25)
Continuity mistake: When the soldiers start to fall, as the rocks start rolling in the Goblin city, in one wide shot Didymus is laughing and has both hands at his chest, with no staff. Then in the following closeup of him saying "Next time surrender" his left hand his out by his side, holding his staff. (01:20:55)
Continuity mistake: When we first see the wiseman, he climbs into the chair, and Sarah runs over to him. In a wide shot the wiseman has both his arms resting on the arms of the chair, but in the next shot of him, his hands are in his lap. (00:37:25)
Continuity mistake: When Didymus says "I say, does anyone want to play a game of scrabble" he has a staff in his right hand, and is holding it down by the side of Sarah's bed, but in the next shot he is holding the staff upright on top of Sarah's bed. (01:32:15)
Continuity mistake: The house that Ambrosius runs into has a small metal pole with thick rope tied around it very loosely. However when Sir Didymus is at the door, telling him to unlock it, the rope is now tied around the metal much more securely and is differently positioned. (01:19:10)
Continuity mistake: When the gang encounter the large robot, as the robot forms together, you can see there is a big axe leaning up against the wall, to the right of the robot. The robot then bellows "Who goes," for the first time. Then it cuts to Sir Didymus barking and then in cuts back to the robot taking two steps forward - in this shot, the giant axe which was propped up against the wall, has gone. It then returns in the following shot. (01:12:50)
Continuity mistake: When Sarah first sits by the worm, and the worm says "'Allo" you can see that all the bricks of the wall are the same dark brown colour. But a bit later in one wide shot when he says "Yeah at's right" the brick behind the worm has changed to a dark yellow colour. (00:19:30)
Continuity mistake: In the Goblin City, the guards emerge from behind the walls, equipped with weapons and ready to fight. Sarah, Hoggle and Ludo run away, but Sir Didymus turns and yells "Right, charge!" But in the next shot Ambrosius cowardly runs away. Between these two shots, the actual clothes themselves which hang from the line above them change, and their positions differ as well. (01:17:25)
Continuity mistake: When Sarah meets the two guards, in a wide shot the blue guard says "One of them leads to the castle at the centre of the Labyrinth..." as he says this, the other red guard has his head sticking out from behind his shield. But in the next shot as the blue guard says "..and the other one leads to..." the red guard now has his head under the shield. (00:26:10)
Answer: They are real. This is seen when Jareth turns into an owl and Sarah sees him fly out of the house. Further proof of this is when everybody that Sarah met were in her room and Jareth was looking into her room before flying off.