I was going to answer the question about MFC but I see it's already been done.
The copy of MFC that I own is the butchered version sold on amazon.com. I purchased it with full knowledge of the fact that it had been edited because I thought while an intact copy would have been nice, an edited one was better than none at all. The points in the film where the edits are made are so glaringly obvious, even to someone like myself who never saw the original TV version. You would think Columbia-Tri-Star could have at least put some sort of disclaimer at the beginning explaining why this was done. (Or did they honestly think people wouldn't notice?)
However I've watched MFC several times by now and noticed a few continuity errors that can't be explained by the edits that had to be made for legal reasons:
1.During the carol singing scene near the end, the Fraggles come up from their cave to take a peek at all their other Muppet "relatives" and we see them sneak up behind Doc, Sprockett and Uncle Travelling Matt while they are singing "The Holly and The Ivy". Yet in every subsequent shot that has Doc, Sprocket and Travelling Matt visible, the Fraggles have mysteriously vanished.
2. When the singing ends, we see Robin "passing on" the little orange pebble that he got from Boober to Grover, who is beside him. Then the doorbell rings and both Grover and Robin react and there's an immediate cut to a wider shot where Doc comes in dressed as Santa. Robin can still be seen but Grover is suddenly gone.
3. Sprockett is near the front door when Doc/Santa enters and they all start singing "We Wish You A Merry Christmas" Then it cuts to the scene where Jim Henson makes his cameo looking out from the kitchen saying "somebody has to do something about these dishes" to Sprockett who is suddenly right there with him in the Kitchen.
Of couse the production personel and crew, and not anyone at Henson, are the ones to blame for these.