When the Twists move from the city to live in an old lighthouse, they discover that the outside dunny is haunted. One stormy night they decide to have a showdown with a very flushed ghost.
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Nell is committed to hospital for believing in dragons; so Linda, Pete and Bronson set off to prove her sanity. While rogue seagulls imprison Linda and Pete in a shack buried in bird droppings, Bronson finds the dragon's egg and Nell is released.
To pass a nerve test, Pete has to collect a rotting skull from the pond at the tip in the middle of the night. But he encounters the resident ghost who wants something from him.
Believing that babies grow in the cabbage patch, Bronson actually finds one there. But he soon discovers that the responsibilities of parenthood have their drawbacks.
Chaos reigns after a bolt of lightning hits the video remote control - it works on people! Pause, rewind and fast-forward have amusing consequences, particularly at the spaghetti eating competition.
Dreaming that she has a huge nose, Linda takes her problems to Aunt Tuneless' shack in the mountains where a war is in progress. People can inflict their own ailments on others by playing the gum leaves from a twisted tree.
Pete's dream comes true when he meets Santa Claws Number 115,302 who grants each member of the Twist family two wishes, something they all end up wishing had never happened.
When Pete dries his underpants in the microwave, special powers are conveyed with embarrassing consequences. But when Pete's frog competes in the jumping competition, the wunderpants save the day.
Pete becomes irresistible to women with the help of some magic lipstick. Dad wants the lipstick too but Gribble Junior steals it, much to his regret.
The Twists find a trunk full of old circus costumes and dress the scarecrow in a clown's outfit. But the scarecrow comes to life and chases Linda. Fortunately Dad, dressed as a fortune teller, sees and knows all.
The Twist children discover old Tom's cloning machine and use it with some potentially dangerous results.
Pete is inflicted with a bizarre speech defect. He compulsively adds the words "without my pants" to the end of every sentence with hilarious and embarrassing results.
Gribble and his partner evict the Twists from the lighthouse in order to build an amusement park. But with the help of some friendly ghosts, the Twists win the battle to save their home.