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Bill must deal with Corrections Canada's new social worker intern at their house. Meanwhile, Dan, Cuddles, and Buttons fight for their new neighbour's affections.

Dan sends Cuddles to jail for swearing and Cuddles ends up running the place by the end of his stay; Dan thinks that Bill might be the infamous testicle thief.

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The puppets steal a car parked near a local variety store. However, they are unaware of the car's owner or the fact that the car contains unwanted baggage - a dead body!

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Dan encourages Cuddles to be more creative in his artistic endeavours but is surprised when he sees the unusual source for Cuddles' newest creations. When Cuddles is believed to be dead shortly thereafter from an apparent suicide, interest in this ' work ' skyrockets and Bill and Rocko quickly move to advantage of this atmosphere.

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A dispute between Rocko and a local drug dealer climaxes with a dead mailman at the door of the halfway house and Bill being blamed for it. To rehab his image, Bill befriends an elderly couple but this doesn't turn exactly as he planned.

When news comes out that Buttons runs a slave labor factory that produces Buttons the Bear dolls, Buttons looks for a way to restore his public image. Rocko suggests contacting a foundation that grants wishes of terminally ill people but Buttons quickly finds out that granting such a wish isn't a short term fix as he thinks. Meanwhile, Dan is annoyed when Bill keeps interrupting at the most inopportune times and Rocko, with great reluctance, agrees to help out a former prison inmate.

Buttons testifies against an old boss and has the opportunity to make $5 million if he can keep his hands of the jury forewoman.

Buttons' trip to Rio lands him in hot war financially and he resorts to kidnapping a wealthy businessman as a means to extricate him from the mess. Dan tries to get Corrections Canada to hire a maid to clean the house for him.

When the guys at the halfway house learn all they have to do to get a satellite dish is for Buttons to sleep with the city counsellor's wife, they pressure him to do so. Meanwhile, Dan and Bill get in a battle of wills over the toilet seat.

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Bill enters the hospital for a lobotomy unaware his surgeon has a secret grudge; Buttons has sex with a nurse in a storage room full of dangerous diseases.

Dan learns that Correction Services will be closing down one of the halfway houses in the area with the other run by an arch rival of Dan's. With the other house populated by seemingly perfect puppets, Dan and his charges seem destined to lose this competition.

Rocko goes on a telethon supporting people who were impaled and goes off the wall because Bill forgot to give him some pills to calm him down. Also, Buttons tries to hit on a woman on the telethon, and Cuddles winds up with a stripper while delivering money to the telethon.

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Cuddles has big shoes to fill when he replaces a legendary safety mascot who was killed on the job; Dan makes Rocko and Buttons work at a hazardous-waste site.

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Dan leaves his umbrella at the CBC during a tour and has to fight the bureacracy to get it back. Bill finds and steals the CBC's secret collection of celebritiess brains

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