Col and Frank find out that either their nextdoor neighbour Mitchell, or themselves will be evicted if their apartments doesn't make inspection by the landlord. With the knowledge they are up against a perfectionist, their attempts to improve their apartment result in irreversible damage and a major cover-up attempt by the pair.
Col and Frank decide they're good enough to appear on a local talent show, `Starquest'. After working long and hard on a musical/dance routine, they feel they are far better than any of the other contestants and deserve to be treated as celebrities. On the big night, things don't go exactly as planned.
When Frank and Col decide to go looking for love in a local pub, they find themselves coming home with two extra people.... Two Girls. But the next morning when the girls have left they find a policeman knocking on their door and accusing them of robbery. Lano & Woodley then become fugitives looking for who really commited the robbery.
After Frank nearly drowns while doing the dishes, Col enrols him into a swimming class. After nearly drowning at the pool as well, Frank falls in love with the pool attendant who rescues him. Col discovers a Penguin Man costume and after dressing up in the outfit, becomes the focus of rage of the real Penguin Man.
After a car accident (where we also discover Frank\'s fear of beards) Col and Frank decide to have a competition to see who is the smartest. After Frank wins (by using the law of averages to get a solitary answer right), Col comes up with a scheme to prove himself smarter using videotapes of a quiz show. Frank enters Col as a contestant on the show. Meanwhile two bearded German backpackers are causing havoc in their attempts to get home.
Col\'s mother dies, leaving him as the sole remaining member of the Lane family. On returning from the funeral, Col receives a letter informing him he was adopted as a child. The woman who is claiming to be his real mother, is a politician with aspirations of one day becoming Australia\'s first female Prime Minister. Her problem ... she\'s seen as not being motherly enough. After discovering that it\'s all a scam, it\'s up to Frank to try and save the day.
While visiting their boss, whom they put in the hospital, Lano and Woodley are mistaken for the baby photographers by the nursing staff. As only these boys can do, they accidentally manage to swap babies. One week later when coming back to hospital, the boys see the parents leaving with the wrong baby and Frank goes to get the other baby while Col tries to stop the other parents leaving. Before everything can be cleared up, the 2nd baby is discovered missing by the nursing staff and the police are called. The boys, now facing a kidnapping charge, decide the only thing to do is try and fix things themselves.