When the Tin Man is doing his little dance, right before the witch appears on the roof, if you look very closely, you can see her (or someone dressed as her) crawling into the house in the back ground, to get set up...
I got no clue what she would be doin', but it looks silly.
Nope, no one is crawling into the house--though there IS suspicious movement there. Again, like the "munchkin hanging himself" illusion, it's one of the storks/cranes/emus/ (whatever--large birds) that are wondering around the set during that entire scene. It's pecking at the ground next to the house, and it's a bit blurry as the camera is focused on the characters (Dorothy and Scarecrow), not on the background.
I haven't seen the movie in such a long time, but I do recall that part that Jason is talking about....I could have swore I saw the witch crawling into the back of the house....
Even though this doesn't happen, there is strange movement BEHIND the house. I'm not talking about the bird everyone mistakes for the hanging man, I'm talking about the weird movement just to the right of the house in the final shot of this scene where they skip away. Behind the bushes there is something moving, and it just can't be a bird, as they are visible elsewhere. Look closely, and towards the end of the shot, everything to the right of the house blurrs out like they were trying to edit something out. Hanging man? Maybe, but not very possible. Anyone remember how they edited out the wheels on Luke Skywalker's landspeeder in Star Wars with vaseline? Maybe they did the same here but for different reasons. The government knows the truth! Don't trust anyone!
Not to sound like a know it all, but I do have the answer to the famous "Hanging Man in the Background." I know that this explenation has been introduced prior to now, but this will tell you how to try it for yourself. I have sat down and "studied" the film a few minutes before the incident and after. During and after the Tin Man sings his song, there is a large bird of some type infront of the small shed that the witch is on while she "threatens" Dorothy and her two new friends. That bird or one like it on the set is the one that produces the illusion of a hanging man in the background. If you watch the spot where the man supposedly is hanging and if you keep the mindset that it is a bird (like a swan or something), you will agree that's what it is indeed. Right before the three go skipping around the corner of the set, you can see it spread its wings!!!! TRY IT YOURSELF!!!! Thanks!