The Gnome haunts the Royal Knight's Faire in Crystal Cove, where some people dress as pirates instead of knights as they prefer pirates. The Gnome corners pirates and touches them, causing them to be paralyzed and glow blue. As the gang tracks him down, he is successful in capturing Shaggy. The gang is directed by Mr. E to to neighboring woods where Shaggy was captured. They find a secret latter to a set of catwalks that run all over the Faire. They lure the Gnome to the trap, but he ends up chasing them. He grabs Daphne, but she did not freeze, shocking the Gnome. They finally get the Gnome to fall into a pit.