When Ted's work reduces his hours he tosses in his job. Bob convinces him to go into partnership selling donuts. All they need is $15000 to start the business and buy a donut truck. They head off to the bank for a loan.
Ted decides to paint the lounge room ceiling. He buys some paint and wins a prize of a free funeral and cemetery plot. However, the paint turns out to be red. A tin is spilt on his chair and so it needs repair. How can he pay for it?
Ted reads in his pay packet that he has been sacked. Sister Maria offers to give him an aptitude test, which determines that Ted is only suitable to be a process worker. Fortunately, Craig finds out that Ted hadn't really been sacked.
Merle is producing a play that she wrote. She is also acting in it, starring opposite Bob. Ted helps Bob learn his lines by playing Merle's part, which comes in handy when Merle injures herself. Ted rises to the challenge.
When having a clear out, some of the rubbish includes Ted's old magic equipment. He was an escapologist known as Ted Bullpitt, the Human Eel. However, time has meant that Ted is no longer able to do the tricks like he used to.
Merle's fashion style is found wanting but Bob tries to placate her by forging a letter from Hazel Hawke asking that she design a wardrobe for her. When Merle starts making the clothes Bob has to find a way to let her know what he's done.
Ted goes to the Kingswood Owners Club fancy dress ball as King Felix of Krasnai. However, some revolutionaries think he is the real king and kidnap him. They hold Ted and Bruno for $1.5 million ransom.
Bob persuades Ted to go into the video hire business, with Ted being Captain Video and delivering the videos on a motor cycle. What Bob doesn't tell Ted is that they are blue movies, which causes problems with the police and Sister Maria.