That screenshot isn't very helpful. It would really help to see the timeline with all modified properties of the layer in question revealed (press the U key twice) and the mesh showing on the frames where the mesh fails. Make sure you have the mesh turned on and visible. Here are some things you must do to have puppet pin work.
- Puppet pin must be the only effect applied to a layer
- The layer cannot have any other animations applied to the layer. No scale, rotation or position changes
- The mesh must be big enough to cover the artwork completely even when deformed
- Puppet pin animations can load up the cache so before you render you should purge all image and disk caches
If you need do other animation or reposition your animated puppet then you either need to pre-compose the puppet pin layer or render the animation to a suitable DI (digital intermediate - not delivery format like MP4) and then complete your project.
As Rick said, without seeing the full setup, including the mesh overlay, this isn't too useful. Quite likely you simply have unfavorable folds that may not show up while you create the keyframes, but then due to the interpolation wrinkle up your artwork inbetween.
Thanks a lot Rick. I didn't know about the mesh part of the puppet tool. It wasn't covering the whole image and wasn't including the whole illustration.
Thanks again! And happy After Effecting!