A young football player, named Matt, from Polk High where Kelly and Bud go to school is threatening two Bundy records. One held by Al for the most touchdowns in one season, and the other by Kelly for refusing her advances. So, Kelly resorts to becoming a cheerleader for Polk High's team in order to catch Matt's attention during a big season ending game.
Steve, Marcy and the Bundys head out to Steve and Marcy's cabin in the woods, but the merriment is halted by Kelly's PMS. The men leave for a bit to go out fishing, and return to all three women menstruating and hostile. When a bear attacks the car, Al hilariously attempts to stop him.
Desperate Al and Steve put their heads together seeking solutions to impending baldness when Steve begins to notice his receding hairline, whereas Al doesn't care at all. After unsuccessfully trying some hair tonic for themselves, Steve tries joining a club for bald men called Bald American Dudes (BAD) and brings Al along with him who holds their latest meeting at the shoe store.
After the death of his longtime barber, Al lets his hair down rather than tolerate a visit to a stylist or a salon... staffed by women. When Al backs down and goes to a salon, he gets a really bad hairstyle that makes him look like a woman.
In the infamous 'lost episode', Al and Peg learn they have been video taped getting intimate at a sleazy motel. The same thing has also happened to Steve and Marcy. They decide to take the matter to court.
The Bundy's go out to a fancy restaurant to spend a great windfall, an inheritance check for $237 from a late uncle of Peggy's. But it becomes apparent that the fine dinning in public is not a part of the dysfunctional Bundy lifestyle, which makes matters worse when Al forgets to bring the check.
Al finally convinces Peggy to contribute to the household income but feels emasculated when Peggy starts bringing home huge "commish" checks from her cosmetics sales job, earning more money than Al, himself. Even Al's new part-time job as a crew member at Burger Trek can't put him back in the lead as family breadwinner. Things go from bad to worse when Al finds the book containing the names of Peggy's customers.
While driving Peggy back from the video store, Steve gets cut off in traffic and Peggy gives the driver "the finger." Steve then asks the Bundys to come over at his and Marcy's house to watch some videos as protection when he's afraid of a violent reprisal when he is followed home by the man. When there's a knock on the front door, Al convinces Steve to take the first punch... and Steve ends up knocking down a midget.
After asking the Bundys to watch their house for the day, Marcy and Steve return to find a big hole where their house once stood. It seems that Peggy had earlier that day mistakenly told a wrecking crew looking to demolish Steve's Road House and she directed them to Steve 'Rhoades' house instead. So the Rhoades are forced to spend the night at the Bundy house. Meanwhile, Kelly throws a slumber party for four of her girlfriends, but Bud ends up disrupting it and turns it into a "cat-fight" riot.
Peggy spends $2,800 of Al's hard earned money ($2,000 on phone bills, $500 on a new dress, and $300 on makeup) when she decides to attend hers and Al's high school reunion dance at Polk High, where Peggy makes a desperate effort to get herself elected prom queen. But she may be outdone by her old rival, Connie Bender. Also, Connie's husband, Jack, an old rival of Al's, eyes a possible fistfight they never had in school.
Peggy stands to lose the crown to Connie, until Al finally decides to stand up to Connie's husband Jack. Meanwhile, Bud and Kelly crash the party to pig out on some real food since they are never fed at home, where Peggy takes advantage of the fight between Al and Jack outside to get the kids help in rigging the election.
After his two best friends find dates for themselves, Bud is desperately seeking Susan, or any girl that will date him. So, Bud resorts to getting a life-size mannequin to pose as his date for the evening. Meanwhile, Al comes up with a million dollar invention for a shoe salesmen's convention that looks desperate, called "Shoe Lights"; he takes the headlights and battery out of the car and straps them on Kelly's shoes.
When a serial peeper is on the loose, Al makes the ultimate sacrifice to alleviate Peggy's despair about being the only one not fall victim. Bud must tutor Kelly so she can pass to the next grade, unfortunately in order to make room, new information pushes out old basic knowledge.