Visible crew/equipment: When Wanda comes into the room and Blade comes after her, a lamp drops off the table when she knocks it, but before it completely falls, a crewmember's hand can be seen grabbing it. (01:04:15)
Other mistake: In the scene with Torch and the lady with the shotgun, after she says, "You may think you got the powers of hell on your side, but you don't know who you're dealing with", Torch raises his flamethrower and Blade watches behind the wall. When Torch shoots with his flamethrower, the lady screams about 2 seconds later. When you see her again in the next shot she is totally on fire. If you think about it, you can tell the timing for the flame is not right and she wouldn't be on fire that fast. (00:36:05)
Continuity mistake: When the little boy playing "Indiana Jones" picks up Torch he is a large doll (about the size of say Chucky) but in other scenes Torch is the size of all the other puppets.
Plot hole: When Torch, Blade and Leech Woman go to the farmer and his wife's house while they are asleep, they killed both the farmer and his wife. The wife was consumed by flames, but not the farmer. When Torch and Blade returned to the Puppet Master with the brains, the Puppet Master says the brains are burnt up. The farmer's brain would not have been burnt up, only his wife. (00:31:50 - 00:37:50)