Peggy narrates her own pirate fantasy to Seven as a bedtime story. In the story, Peggy plays Princess Scarlett. Al is Captain Courage, her pirate captor and Jefferson is Prince Paco, her savior. Rounding out the cast is Bud playing the hunchback first mate Fluvio; Kelly as the dim-witted ship's navigator; Marcy playing the cabin boy/girl; and in a surprise appearance, Marcy's ex-husband Steve Rhoades playing the villainous Rubio the Cruel, who's feared for his terrible singing of show tunes.

After Al knocks out and captures a burglar that breaks into his house one night while he's sleeping on the couch after an argument with Peggy, he becomes a neighborhood hero. But the tables soon turn when the burglar sues Al for injuring him and the Bundys must go to court once again.