The last hand: better than people think!
When I first watched the movie, I thought that the last hand (and especially the way that the old master played it) was a definite sign that the lady dealer was colluding with him. On closer inspection however, every move from both players made sense (even though, of course, the event of a full house running into a straight flush in stud poker is insanely improbable):
1. First Card - Kid: (A)T, Master: (J)8, Pot: 1000 (?)
The kid bets 500 and the master calls. Depending on the antes, this may or may not make sense, so let's assume that the antes were high enough for this to be ok (let's say 500 each).
2. Second Card - Kid: (A)TT, Master: (J)8Q, Pot: 2000
The kid bets 1000 and the master raises to 2000, which the kid calls. Obviously, a value raise from the master would be completely insane in this spot. However, he was simply bluffing, representing a second queen in the hole, which would crush the kid's pair of tens. The kid on the other hand (correctly) does not believe him and calls.
3. Third Card - Kid: (A)TTA, Master: (J)8QT, Pot: 6000
Now the situation has changed again and the kid knows he is far ahead against the master's represented pair of queens. He bets 3000. The master knows he is far behind, but he has 8 outs for a flush, 3 outs for a straight and 1 out for a straight flush. All in all that gives him a 12/46 chance to outdraw the kid's represented trips or two pair on the last card. Discounting for the fact that the kid might get a full house, let's assume that the master has only 11 real outs, which would give him a 24% chance of winning. Thus, even if no money went in on the last card, a call would be almost correct. Adding the implied money that will be bet on the last card (only if the master makes his draw) makes a call profitable, so the master calls.
4. Fourth Card - Kid: (A)TTAA, Master: (J)8QT9s, Pot: 12000
That street played itself: Master bets small (1000), kid raises big with his full house (4500), hoping the master made his flush, Master reraises big with his straight flush, hoping that kid has a full house (9500), and kid cannot fold his full house because the master might have a normal flush (in addition, routinely folding a full house in this situation would be hugely exploitable by bluffs).
Thus, all in all, while the situation was utterly ridiculous, it was at least decent poker from all participants.