Man, that's a large mountain Santa's on. That's a huge box for such an underwhelming Leg Lamp. They BANDAGED Flick's tongue? What? Oh wait, it's a middle-aged man's retelling of what he saw through the eyes of a 9-year-old — of course everything is exaggerated!
This also neatly explains any anachronisms in the movie. For example, during the parade, the Mickey Mouse costume seen was WAY more advanced that the primative ones of the late 30s.
Likewise, Scut Farkus' supposed yellow eyes and Grover Dill's supposed green teeth are both directly contradicted by onscreen evidence, suggesting the narrator was making a good story of it at times...
When Ralphie's Old Man is asking him what Ralphie asked Santa for, on the second viewing it hits you that he had just bought Ralphie his BB gun while Ralphie was talking to Santa.
While the old man's freakout over a fuse being out is hammy at best. When he tells the family not to move, he was probably worried that wandering in the dark would cause one of them to trip and fall on something.
Why did Ralphie imagine Miss Shields as the Wicked Witch of the West? It's a slight nod towards the Witch's actress originally being a schoolteacher.
In addition to "Oh fuuudge" which he heard from his old man, Ralphie also says "Son of a bitch" when he's disappointed over his decoder ring. This is something else he was repeating since his father does say it earlier in the movie in front of the family.
Ralphie's punishment for swearing and the interrogation that followed. It's impossible to tell Ralphie not to say "fudge" without using the word "fudge," so why ask where he heard it? And if you never told him not to say it, why punish him for saying something he didn't know was wrong? Nevermind Mother never realizing that Ralphie heard it from his Dad, even though there is at least one scene earlier in the movie where they both listen to his rantings.