The montage of Timmy's "good times" with Vicky includes a moment from the episode "Dream Goat!".
The introduction Cosmo and Wanda give Vicky is a reference to the one they give Timmy in the pilot episode and on the video tape that they show Timmy on Abra-Catastrophe!
Similar to the episode The Secret Origin of Denzel Crocker, this episode might be an example of predestination paradox. Vicky was a nice five year old girl, but when Timmy cruelly babysat her, she quickly became mean, which is perhaps an indication why she eventually became a mean babysitter herself.
Little Vicky's character model was reused again for Nicky in the Breakin' Da Rules! PC game (despite that Nicky is actually supposed to resemble Tootie while her father resembles Vicky).
This is a third time there is a transformation to Timmy.
This states officially that kids with fairies cannot use magic to kill anybody, as Timmy thought Vicky was going to kill him with the robot's sharp mashing teeth until Wanda pointed out that she cannot do that, as that is against Da Rules.
A running gag in this episode is that people use tape recorders as either threats or proof. Often a gruff voice is used in the tape recording for some reason.
This episode and The Zappys! have the same title card music.
The Wizard of Oz - The music playing when Cosmo sees Vicky ride her bike towards the house is a reference to the Wicked Witch' theme.
Etch-a-Sketch - Timmy's "Sketch-a-Dial" is a parody of the popular children's toy.
It did not show how Timmy and his godparents changed Vicky back to a teenager, although she is back to normal by her next appearance regardless and her memory of what happened to her in this episode is erased.
Timmy made that Vicky becomes a child making him her babysitter, that is impossible because Vicky is the reason Timmy has Cosmo and Wanda so they should disappear and Timmy should be brainwashed.
However, as a result of the wish and Timmy becoming her mean babysitter, the fairies were given to her. Also it wouldn't make sense if anybody finds out she became a 5 year old suddenly.
If Timmy lost his fairies, then his memories should have immediately been wiped. It could be possible that memory wiping would not apply if the god child's fairies were reassigned.
Since Timmy's parents violated a legal document, they should have went to prison. Also since the kids took pictures/videos of Timmy in his underwear, the kids, or Vicky should have went to prison for child pornography or for child abuse.
When the Fairyworld worker first shows the phrase that would take away your fairies, it read "I'm happy and I don't need my fairy godparents anymore." But all other times later in the episode, the "fairy" part is omitted from the phrase.