When Mark lands in Lidsville, the bad hats mistake him for a spy and take Him to Hoo-Doo, the evil magician of Lidsville. Hoo-Doo makes Weenie Genie take him to the dungeon. Mark explains to weenie about the real world, and they plan to escape Hoo-Doo's top hat. Soon they are suspended over the shampoo river, and are rescued by twirly, the good beanie, and are taken back to the good hats.

Hoodoo's mother comes Lidsville with the notion that her son has turned to a life of good. Through a series a flashbacks, the townspeople try to convince her that Hoodoo's still as rotten as ever.