The puppets steal a car from outside a variety store, and head out for a joyride. Also, Buttons the Bear hitches a ride with an odd couple who mess with his head.
A special black and white episode and an homage to old 1940's 'B' movies. Dan and Cuddles are drawn into a web of intrigue when Cuddles accidentally acquires a mysterious falcon from some criminals.
Buttons the Bear attempts the ultimate act of charity by granting a dying woman's last wish. Meanwhile, Rock tries to help out an old prison friend, and Bill keeps catching Dan in compromising situations.
Dan and the puppets are pitted against a rival halfway house full of ridiculously nice puppets. Things come to a head when Corrections Canada tells Dan that one of the houses must close - theirs or the rival house.