Continuity mistake: After Norman argues with Mr Toomey, before he goes up to the house, you can plainly see the light on in the living room where Mary is sitting. When Norman goes in the house, Mary is sitting in the dark and Norman then turns on the light.
Norman Bates (Perkins) has finally been judged mentally sound and released from the mental institution where he has been for 22 years. Once out, he eventually falls in love with Mary (Tilly). But Lila Loomis (Miles), the sister of Marion Crane who was murdered in the shower 22 years before, protests fiercely over his release and wants him put back in the institution for life. Then Norman sees his mother in the window of the Bates house and the murders start happening again. But this time it isn't Norman... or is it?
Mary: You really wanna know what Norman's like?
Warren Toomey: Yeah.
Mary: Better than you'll ever be, fat boy.
Question: Spoiler alert: this question gives away much of the first "Psycho" movie. In the original Alfred Hitchcock "Psycho" we witness Norman Bates murdering Janet Leigh/Marion Crane and Martin Balsam/Milton Arbogast, and very narrowly missing killing Vera Miles/Lila Crane. At the end of the movie we discover that Norman Bates had murdered his mother and her lover ten years previously. We are also told that he had killed two female guests at Bates Motel. Norman Bates is therefore guilty of six murders and one attempted murder. In Psycho II we find out that, after his crimes were discovered, Norman Bates was placed in a secure psychiatric institution for the criminally insane. This does seem plausible. But with such a criminal record, would he ever be released from incarceration?
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