Continuity mistake: When Mrs. Waterhouse walks into the livingroom and greets her three babies, there is a large area rug in front of the coffee table. However, as the babies fly towards her in the wide shot facing her, that area rug is gone! (00:22:55 - 00:23:50)
Continuity mistake: At the cemetery, as Frank grabs Ray the ghost to pull him from his grave, the grave diggers are seen shoveling dirt into the half-filled hole. A few seconds later, Frank yanks Ray out and the grave is now completely filled and the grave diggers are gone.
Continuity mistake: When Frank returns home from the Lynskeys, he parks his Volvo right beside the outdoor fuse box post, with the box facing beyond the trunk of the car. However, after Frank goes upstairs, in the next exterior aerial shot the Volvo is 10-15 ft. away from the fuse box post and the box now faces beyond the front of the car. (00:17:30 - 00:19:20)
Continuity mistake: At the Bradley house, when Patricia runs to and then up the stairs, to try and get away from the ghost, the blood stains on Patricia's white robe change position. (00:02:10)
Continuity mistake: After Frank destroys Ray's fence, he backs the car over Budzo (the ceramic little gnome), crushing it on the lawn. Yet, when Ray picks him up crying out, "Oh, my Budzo! My Budzo!" he is holding the gnome's uncrushed head! (00:07:05)
Continuity mistake: At her house, Patricia runs away from the ghost and when she first enters the kitchen the countertops beside the sinks are completely bare. However, a few shots later there are neat stacks of china on the countertops, ready to fly off in the mayhem! (00:01:45)
Continuity mistake: Frank catches the statue, that he accidentally knocks over near the chapel. The way he catches it is completely different in the first shot facing up and the next close-up. (01:35:05)
Continuity mistake: At Frank's house, while Stuart rambles on about happy and productive ghosts, Frank pours himself a bowl of Jeepers Creepers yellowish color flake cereal. After Frank sprays Stuart in the face with the Shoo Fly, Frank eats cereal that are roundish dark-colored bits. (00:19:35)
Continuity mistake: The red marks on Frank's neck change in consecutive shots from the time he receives the injury. (01:29:30)
Continuity mistake: The colours on the dial of the freezer Frank goes in changes between shots. When Lucy turns it down you can see the colours are light and dark blue. Later on in the wider shots and when she tries to open the door and Milton Dammers stops her, you can see it's blue and red.
Continuity mistake: At the police station, the filing cabinet beside Lucy is visible in the wide shot, just before Dammers says, "Debra's corpse had the number thirteen carved into its forehead." Then, in Lucy's close-up different things are on top of the filing cabinet. (00:46:10)
Continuity mistake: At Mrs. Waterhouse's home, the large potted tree, beside the doorway with the bouncing baby, is visible in consecutive shots and the leaves' position obviously differs in those shots. (00:22:55)
Continuity mistake: At the police station, when Dammers tells Lucy about the day that Debra died, there is a shot of the utility knife in Frank's toolbox and the initials F.B. are written in white on the knife. Later, when Lucy finds Frank's utility knife in Mrs. Bradley's bedroom, the initials are written differently. (00:44:30 - 01:05:50)
Continuity mistake: When Frank slams his car into Ray's fence, the Volvo sustains body damage on its left side near the headlight. This damage disappears in later shots. (00:06:15)
Continuity mistake: When Lucy is stuck on the floating bed the pillows are visible and when Ray helps her down the left pillow sham is lying flat. However, when the bed lands all the pillows and shams are upright and neat. (00:12:35)
Continuity mistake: When Frank arrives at the Lynskeys to take care of their ghost problem, he drives onto their lawn again. In the wide shot he takes down a piece of the picket fence, which falls squarely on top of the little statues, including little Bonzo's grave, and proceeds to drive toward the house. However, the next close-up is of the statues, who are still standing, and as the car runs over them the picket fence does not slam down on them like in the wide shot of the 'same' action. (00:13:25)
Continuity mistake: At the police station, when Agent Dammers sticks his badge in front of Sheriff Perry's face, the position of the badge in his hand differs in the shots facing Perry and the close-ups of the badge. (00:56:10)
Continuity mistake: After Frank 'bumps into' the hearse leading the funeral procession, he sees Ray's ghost running up the street towards him. In Frank's front close-up as he raises his arms in shock, the whicker baskets in front of the pet shop are on his left. As Frank hits the ground the baskets are beside him and they are arranged quite differently. (00:26:15)
Continuity mistake: When Frank drives over and crushes Ray's little gnome statue, as Ray shouts the subtitles read, "Budzo! Oh, my Budzo! My Budzo!" However later in the film the gnome's grave marker actually reads, "Bonzo." (00:07:05 - 00:13:30)
Continuity mistake: While Lucy is on the floating bed, only the floral blanket that Ray tossed is on the floor. After Ray helps Lucy off, they sit together across the room and in the next shot when the bed lands, the floral blanket and now a pink blanket are on the floor near the bed. When Lucy screams as Raggedy Anne pulls on her, the two blankets are visible across the floor and their positions differ. (00:12:45)
Chosen answer: For the most part, the actors playing the ghosts were shot separately on blue-screens, and then comped into the scenes. (By removing the blue background through a process called "color keying", and placing them over the scenes) They were simply given a blueish glow and made semi-translucent to complete the effect. It was pretty cutting edge back in the 90's, but nowadays, it'd be very easy to make the exact same effect using a simple program like Adobe After Effects.
TedStixon