Continuity mistake: When Austin is unfrozen you see the two nurses remove the wires clipped to his ears, then suddenly they are back. (00:11:35)
Revealing mistake: During the honeymoon sequence at the end of the film, if you look at the right top of the flowers in the vase during the "flowers covering nipples" bit, you can see a bit of red duct tape covering Liz Hurley's nipple from behind the flowers. (01:22:20)
Revealing mistake: In the scene at Alotta Fagina's penthouse, you can see the side of her swimming costume as she gets in the jacuzzi - she's meant to be naked. (Fullscreen only). (00:44:00)
Continuity mistake: When Austin and Mrs. Kensington are at the Swinger's Club and the waitress gets punched in the face her hat falls off. In the next shot he/she is still wearing it. (00:05:10)
Continuity mistake: After Austin and Vanessa's night on the town, she falls asleep on Austin, holding a champagne glass. When the laptop computer starts beeping, the camera angle changes as we see Austin push her off him, and the champagne glass has suddenly disappeared. (00:41:15)
Visible crew/equipment: When Austin and Vanessa swing off the slow moving dipping mechanism using dental floss, if you look in the top right corner of the screen you can see some kind of a support harness that the dental floss is connected to. (Fullscreen only). (01:07:30)
Continuity mistake: In the scene where Austin is about to get in the jacuzzi with Alotta Fagina his hair is messed up from taking off his shirt, but when it shows him getting in it's fixed. (00:44:40)
Revealing mistake: In the scene where Austin and his allies burst through the big blue door, right before "Secret Agent Man" begins playing, the door explodes, and you can clearly see that it's made out of wood, even though it's painted to look like and is meant to be metal. This mistake is even mentioned in the director's commentary on the Austin Powers DVD.
Continuity mistake: In the scene where Vanessa gets drunk and the laptop rings, the first time it shows the laptop, there is an alarm clock behind it. First it reads about 10:30 or so. The 2nd time it is off. (00:41:25)
Continuity mistake: When Austin is working his mojo on the fembots, take note of his pile of clothes that have been carelessly tossed into the corner of the room. Whenever the shot returns to Austin dancing around, the pile of clothes seem to have changed their arrangement. (01:14:00)
Revealing mistake: When Austin lowers himself in the jacuzzi you can see he's not naked but wearing flesh coloured swimming pants. (00:44:40)
Answer: Number 2 doesn't get killed. It is obvious from the attempt to kill Mustapha that the fire/chair thing is faulty, this is demonstrated in the second film by the fact that number 2 has a large burn scar on his face to show that he wasn't killed, just burned.