Go to the part where Jasmine runs away and goes to the marketplace. She gives an apple to a little boy and Aladdin says she is his crazy sister to save her from that guy. Well, watch when Aladdin takes the sword from the guy. He gives it to Jasmine behind his back and then when Jasmine is shown again, (I believe it is when she pretends Abu is the sultan and bows to him), the sword is gone! It is not in her hand, it's not on the ground, and no one else is holding it, so where did it go?