It's the Furchester Horse Jumping Tournament. Phoebe and Elmo are setting up the course for the horses and Furgus is fixing the lift again. Just then a Wild West-style horse arrives - his name is Gidyup and he is the best jumper around. They ask him what his secret is to being such a great jumper, and he tells them that it's all because of his lucky horseshoe. But when Gidyup shows his lucky horseshoe to Elmo and Phoebe, it gets stuck in the broken lift. Gidyup does not want to jump without his horseshoe, but Elmo and Phoebe tell him there must be a way he can jump without it.

It's just another day at the Furchester Hotel until the Furball, a bouncing, furry monster ball, arrives. Whenever he turns up at the hotel, they all play a game of Furball. It's the best game ever. Furgus and Funella tell Phoebe and Elmo to keep an eye on the Furball and not let him out of their sight. But just at that moment, the Furball disappears.