Continuity mistake: When Jesse and Lisa first arrive at the boiler room factory, Jesse says to Lisa "How long has it been closed down?" And then Lisa replies. To the left of them you can see a large machine, which Jesse and Lisa are standing well away from. But as the shot changes, they are now standing right beside the machine.
Continuity mistake: At breakfast, when Jesse's sister goes to sit where Jesse is about to sit, Jesse says "No!" to her and she sits back in her chair, still trying to get the plastic claws out of the cereal box. As she tries to get the claws out, she is holding the top of the cereal box with her left hand. Then in the next closeup of her, her hand is down by her side.
Continuity mistake: When Jesse and Lisa are reading Nancy's diary, Lisa reads the first entry and it says all about Nancy dreaming of Freddy. The next entry that Lisa reads is about Tina being killed.If you remember in the first Nightmare, Nancy does not find out Freddy's name until after Tina is dead. The entries in the diary are not in order.