Revealing mistake: When Michael is hung from the window, an upwards shot reveals the top of the sound stage the Myers house was built in (top right corner). (01:13:42)
Other mistake: After Michael kills Laurie at the beginning, he hands the knife to the inmate with the clown mask. The next kill is the cameraman for which he uses the tripod ends. A few scenes later they show Michael standing holding a knife with fresh blood on it. He hasn't killed anybody with this knife yet so where did the blood come from?
Plot hole: When the first security guard, who stayed back to get something to eat, hears something in the laundry room, he walks over to the washing machine where he finds the head of the other security guard inside. He turns around screaming and trips over the security guard's body on the ground with no head. Wouldn't he notice the dead body on the ground when he first entered the room?
Continuity mistake: When at his house, the first crew member Michael kicks with a camera. He puts that camera on the ground, tripod closed and laying down. When the people first walk into the house they switch to a camera view that's up the stairs and you can see that the camera that was laying on the floor is now propped up against the wall.
Continuity mistake: At the party, when someone screams out to turn the volume down, right behind the kid that plays Decker is a blonde haired boy with a red smoking jacket. It then cuts back to inside the Myers' house for a few minutes. When it cuts back to the party that same blonde haired boy just walks in as if he wasn't in there before, asking what they are watching.
Plot hole: In the flashbacks to Michael's escape in H20, why did they send one lonely paramedic in to get him? Not only that, Michael was able to promptly switch outfits with him, place him in his spot, and exit the scene before anyone else entered the room. In H20, the place was swarming with police and paramedics.
Continuity mistake: When it flashes back to how Michael Myers survived the end of H20, we see the paramedic that he subdues and switches places with. That paramedic had a bit of a stomach on him, yet the figure of Michael Myers throughout the rest of H20 after the switch remains the same as the real Myers. [A side note: Halloween H20 WAS intended to be the absolute final film, but popular demand forced a return and obviously they needed a scapegoat excuse to bring Myers back. Still...]
Audio problem: Take note of when Michael Myers brandishes his knife. Any time the knife is shown, an audible, metallic 'SHHHING!' is heard, as though the weapon is being pulled out of a sheath or scabbard. Even when the knife is being held still, the sound effect is still heard. It gets to the point of being almost comical.