Buttons the bear is working for a wealthy old colonel and begins a torrid yet dangerous affair with the old fellows beautiful young wife.

Dan is unable to get his garden shears back from his neighbor Quigley. When Quigley dies, Dan is faced with the dilemma of how to get the shears back.

Dan and the puppets attend a funeral, where Dan discovers that his sexy cousin is a necrophiliac. Meanwhile, Cuddles gets a job at a hospital.

The puppets are working backstage at a Shakespeare festival. Buttons is a dresser for one of the great legends of the theatre, Sir Percy Quill.

Cuddles gets brainwashed by the Canadian military to be a killer zombie when triggered by a code word. Unfortunately, something sets Cuddles off and Dan has to figure out how to stop him.

Buttons the Bear starts to have a torrid affair with the City Counsellor's wife, and quickly finds himself in way over his head with an obsessed woman. Dan devises a unique strategy to get him out of it.