Margo gets a new neighbor, Johnny Wrath, who is the lead singer in the rock group, "Nuns in a Blender". Margo falls in love with him but doesn't feel the relationship is right when she finds him with another girl. Meanwhile Alice tries to find a suitable preschool for Penny.

Jay is hosting his 10th anniversary show held at Carnegie Hall where he showcases a number of movie clips from old episodes such as Jurassic Park 2, Every Which Way but Lucid, and Rabbi P.I. The show is later held hostage by a number of terrorists who threaten to blow the place up with a bomb tied to Jay's waist. Fortunately, everybody is eventually rescued by Milton Berle.