Where was Jason when the movie started, and how did he get to Springwood? How does Jason get anywhere that's too far to walk? Has he ever been officially acknowledged as having teleportation abilities?
Jason was in Crystal Lake which seems to not that far from Springwood since it was close enough to drive in a single night. And for Jason nothing is too far to walk/swim. He can walk quite quickly for one, doesn't get tired or bored or any of that. He could walk to China if the mood struck him. Though only a few movies have him outside Crystal Lake and they all have semi-plausible explanations. He took a boat in Jason Takes Manhattan and swims the last few miles, his body is transported in Jason Goes to Hell and his Heart eaten, he's captured in Jason X and he's summoned and walks in Jason vs Freddy and we have no idea how long it took. Freddy had been searching for years, I doubt he'd even register a few weeks or months.
Isn't Springwood officially confirmed to be in Ohio, and Crystal Lake in New Jersey?
When Freddy comes out into the real world, the dream would switch to reality, and normal rules apply (no extending arms, no teleporting). So why don't Freddy's burns hurt? He should wake up and immediately fall to the floor writhing in pain.
All his nerve endings have been dead for decades now.
He isn't godlike anymore, but he isn't human. Same reason why he can survive most of his limbs being torn off, decapitation, and is still superhumanly strong. If he were just human, his fight with Jason would have lasted about as long as it took Jason to cross the room to get to him.
Why would Jason be afraid of water? He lived in the lake for years. I know its an attempt to make this a battle of the elements, but it really seems inconsistent with past movies to me. Instead of making their methods of death their weaknesses, why not make them their strengths? (drowning scene could still happen, it would just be more ironic: Freddy turning Jason's own power against him)
It may be that being in water is the closest Jason gets to death. Whenever he comes back from the dead, he's come out of the water. He's been trapped underwater multiple times. His goal is to get out of that water. And usually he can stay out of it. Then Freddy, Master of Nightmares, digs in his memories, and drags out the scared little boy who drowned years ago. All that repressed fear is now being released and is giving Freddy more and more power.
How did the kids get between Springwood and Crystal Lake in one night? Springwood is in Ohio, Crystal Lake is in New Jersey. That leaves at least the entire state of Pennsylvania between them, yet it seems to be implied that this wasn't that long of a trip.
The magic of fictional timelines. What may take hours in the real world only takes a few minutes to get from "Point A." to "Point B."
The writers timed out how long a trip from Ohio to New Jersey would be and wrote it into the script. It was all removed by the final edit.
They ran out of tranquilizers - couldn't have been too short a trip considering the dose he started with.
Well, they never actually said how much of the tranquillizers they took with them.
Why does the police chief discourage the young officer who thinks, mostly correctly, that the murders taking place are the work of Jason Voorhees or a copycat of Jason. Jason=/=Freddy. Hell getting the town as a whole focused on a single specific NON-Freddy entity would actually have worked to their benefit!
The transfer officer didn't say it was Jason. He said it was a copycat of Jason - a mortal individual, since not only has Jason been put down for years; he's known to never leave Camp Crystal Lake if he can avoid it. This was pulled off so that they were both wrong. The adults of Springwood are used to Freddy coming back though. A mortal killer is the least of their worries. Also, the adults thought that Freddy had found his fear, not that his plan was still to create it with Jason.
That still doesn't answer why the police chief didn't run with the Jason theory. It would have been an easier on them.
Because acknowledging there's a serial killer on the loose, even if it's just a mortal one, is going to make people extremely afraid. Most police chiefs try to avoid terrifying the populace anyway, for a variety of reasons, but in Springwood there's an even better reason for it. The illusion of "It's all under control" is more than a political ploy there.
The movie seems to imply that it's not fear that gives Freddy his power, it's fear of Freddy. "Being forgotten, that's a bitch." It's also fits with the way the town erased all records and memory of him. They could be scared out their minds about Jason, Pinhead, Mike Myers and the Deadites besides and it wouldn't do Freddy much good. Yes the illusion of we have it all under control is a good one but the truth would have worked just fine had Will and Mark not escaped and spread the fear specifically of Freddy. Though Lori seemed to be somewhat aware of Freddy already and with sufficient nudging would probably have spread the fear herself. That's yet another downside to not running with the 'it's Jason' story. Jason is just a psychopath in a mask. He's been "killed" at least twice in cannon in parts III and IV and after part IV it stuck long enough for Tommy to go from a kid to a teen. A bunch of cops hunting Jason would would probably go about the same way it worked in Jason goes to hell. One dead zombie. Jason defeated the town has nothing to fear, Freddy's plan fails. There really was no upside to what the sheriff went through but if I had a killer ghost in my city that was defeated by ignoring I might not think rationally when stuff started happening.
Why does Freddy suddenly need kids to be afraid of him to be able to kill them? Back in the original Nightmare the kids didn't know about him at first either, yet he was pretty capable to enter their dreams anyway.
Freddy vs Jason seems to take place in its own continuity that has several discrepancies with the original series. If that's not good enough for you the Nightmare on Elm Street series wasn't particularly consistent. The first movie allowed him to kill the children of the adults who killed him. The second (which we often try to ignore) let him possess the boy living in his house. The third returned to the original formula. The fourth saw a new girl who could open the way into other people's dreams for him, the fifth gave her unborn baby the same power and the sixth movie (which in theory happens sometime after Freddy vs Jason just like Jason X takes place some time later) gave him the ability to jump into all the children in the city. Freddy might just be the epitome of villains with plot driven powers.
Why don't the adults of Springwood put the Hypnocil in the town's drinking water? Or find some other way to make sure it was administered to everybody? They know that it works to suppress dreams and keep Freddy from coming back. If it didn't, Mark would have died years ago because he mentioned that not only was his brother killed, or driven to suicide, by Freddy, but that he had the nightmares himself. The Hypnocil is the only reason he lived so long after going to Westin Hills. It doesn't make sense for them not to dose the whole town with it to ensure that Freddy couldn't come back at all, no matter how scared the kids were.
Hypnocil has been around since Nightmare on Elm Street 3 which is at minimum a decade or so before Freddy vs Jason (there isn't much to accurately give us a hint of the time table) and in all that time it hasn't been approved for the public use for a reason. That stuff is dangerous and people NEED to dream. From what little was saw of Westin Hills two things are pretty clear. First Will and Mark are clearly higher functioning than most of the people interned there and as we find out from the Coma Ward there are LOTS of cases of people overdosing on the stuff and that's just from the fairly limited amount of people they are dosing. Plus in real life people need to dream and that's probably true in-universe as well. Why at no point was it decided to burn the entire city down records and all and leave is beyond me. It seems clear that Freddy's Dead either still takes place 'Ten Years from now' or can safely be considered non-cannon and either way Freddy seems to be more or less limited to Springwood, scorch the city and GTFO would solve the problem relatively well.
The reason for that may have been because (and this is sort of a cop-out excuse) it would be too obvious. If the entire town stopped having dreams completely, all at the same time, that may arouse suspicion. By committing the few people who knew of Freddy, they could simply either fake those people's deaths or declare that they're psychologically unstable. Keep those people sedated and doped up on Hypnocil— nobody's really gonna make a huge fuss about a dozen or so Springwood citizens either being declared dead, insane, or missing. That happens all the time in plenty of towns.
A minor thing, but how Jason knows where Elm Street is?
Freddy might have downloaded a map into Jason's head. Or maybe he kept appearing in dreams to give Jason directions.
Most likely in the same dream sequence that Freddy used to wake Jason up he "implanted" Elm Street as Jason's Territory. So it's basically the same way that Jason finds his way home instinctively in Jason Goes to Hell. Basically think of it as magic GPS or a homing signal. He knows where he's supposed to be. Not that the kids had anyway of knowing but most likely taking Jason home was at least partially unnecessary. Killing Freddy would probably have dismissed him, hell Freddy could probably have dismissed him if he hadn't been blinded with rage after Jason stole a kill from him. I hear between serial killers Kill Stealing is serious business.
In a flashback at the beginning where does Freddy get his victims' photos that he puts in his album? Judging by faces of the kids, he didn't take them himself, and they don't look cut from the newspapers - they are actual photos. Did all kids just happen to carry around their photos?