SuperTed and Spotty travel to Lethargia where the children are all having the same scary nightmares. Ted enters their dreams to help. There he confronts the dreaded Sleepless Knight, whose goal is to give children everywhere nightmares.

SuperTed and Spotty journey to the “Kids Town Satellite”. SuperTed recounts his adventures on the planet “Fluffalot” where he defeated the Hairmongers and their leaders, Julius Scissors and Marcilia in a series of “Ben Hur” like contests.

Billy's father goes missing after a cave painting exhibition of 'Polka Dot Trible' in a Brazilian Rainforest cave, he comes to get SuperTed and Spotty (who have been watching a carnival in the Rio Street) to come to the rescue of his missing father. then Spotty gets to focus of some 'legendary' attraction when they get to the Polka Dots Village (to whom its leader Polka Face sells his tribal land to Theme park developers, then turns into a nice guy at the end)