Stupidity: When the parents knew Freddy was doing the killing then why didn't they watch him like a neighborhood watch so they could catch him trying it again, and thus avoid the legal technicality which threw out of the first case? It seems idiotic they broke the law to punish this lawbreaker.
Factual error: When Glen and Nancy are talking on the bridge, you can see a huge palm tree in the background. Springwood is supposed to be in Ohio - they show a map in 'Freddy's Dead, the Final Nightmare' - there are no palm trees in Ohio. (00:52:00)