Other mistake: When somebody throws a cola can at Homer, the can never hits the ground.
Homer's Barbershop Quartet - S5-E1
Continuity mistake: When Bart and Lisa find the record Melvin and the Squirrels, they hand it to the Comic Book Guy to play. While the record is in his hand you can still see it displayed on the rack. (00:03:40)





Answer: Willy referred to an encounter he believed he had with actual aliens, while Wiggum thought he was referring to the arcade game.