A rumor involving Penny and Myron (the school nerd) is spread. Penny's reputation is ruined, and even her friends believe the rumor. Her enemy, and sometimes kind of a friend LaCienega started the rumor, and another rumor spreads about LaCienega trying to steal Myron away from Penny.

Penny's crush on a new boy at school has repercussions beyond her wildest dreams when she helps promote his music-sharing Web site. Penny is used as a tool to infect the whole world with a website marketing illegal free music downloads using the philosophy that "free music is our birthright."