Continuity mistake: In Squirrel Jokes, when Spongebob comes out for his second act, there's a back shot of a crowd, and there is one guy in the front right (from the back view) who is green. There is another front shot of the crowd and the guy completely disappears.
Continuity mistake: During Spongebob's act, he says to the audience, ".I'd like to give a special thanks to my friend Sandy over here" and the spotlight moves from Spongebob to Sandy. A few shots later, when Spongebob is talking to Sandy, the spotlight is suddenly no longer on Sandy. Then when Spongebob yells "Am I right?" to the audience, the spotlight is on him and as he turns to talk to Sandy again, the spotlight is altogether gone; it's not on either one of them.
Revealing mistake: When we see Billy get told about the stupid squirrel, he has a sleeve going through his arm. The moment he starts talking, the sleeve disappears and his arm extends over his shirt. Around the end of the shot when he's being pulled away, the sleeve returns.