For starters, it's not the atheists' nightmare.
He says there are 3 grooves (index finger) and 2 grooves (thumb) and "the banana and the hand are perfectly made one for the other". He ignores the 6th groove, when the tips of the finger and thumb are pressed together.
The banana doesn't have the non-slip surface, the hand "has" it.
I guess you could technically say, about most of it, he didn't lie. He never said "This banana, still in its original form, was created by God" and went on with his shtick... but he eluded and implied that.
So, not error-free.
It's also interesting to note that he kinda conceded that argument in 2006 and lied saying, "I put it into a booklet form ("The Atheist Test") and sold over a million copies. Then Kirk Cameron and I put it into our TV program. However, atheists removed the coke can, and sent the clip all over the Internet, saying "Ray Comfort believes that the banana is proof of God's existence." They really made a monkey out of me. I became the laughingstock of atheists all over the atheist world. It was very humbling." There is no such video.