Continuity mistake: Just before Gus is awoken by noises in his apartment, there is a shot of his alarm clock. The time shows 6:07PM. When he gets out of bed, the clock says 7:01 (cannot determine if it is AM or PM). Even assuming he just lay in bed for an extra hour, he then tracks down Lassie who is about to eat lunch. (00:27:00)
Continuity mistake: At the end of the episode when Shawn and Gus are at the new Psych office, Shawn puts some scissors in a cup with pencils. The shot changes and the scissors have changed position.
Continuity mistake: During the first scene in Gus' office the door is open in some shots and closed in others.
Chosen answer: "Psych: The Musical" was supposed to air during the regular season 7 schedule, before Chief Vick is suspended and Jules discovers Shawn's lie, but the network decided to push it back to air as a special episode, sort of as a tie in with the holiday season and a lead in to season 8, which was to begin only a couple of months later.