Danny thinks it is a silly story, and runs home. James is rarely around, so Uncle Fred serves as a stand-in father for Danny. That night, James is planning to announce his "Halloween Spooktacular" idea to raise funds to re-open Walker Chocolates at the town meeting. Uncle Fred and Danny try to tell him that the townspeople will be too afraid to support the Spooktacular because of the curse, but James will not listen. At the meeting, Mayor Churney (Roy Billing) announces James, who is surprised to find the people of Walker Falls shudder at just the mention of Halloween. To bring the conversation back on track, his secretary passes out samples of chocolate, and James almost wins them over, but when he reveals his Spooktacular plans, the townspeople are terrified and run out of the building. That morning, there is a commotion outside the house. Halloween decorations are all over town, and a large pile of pumpkins has been discovered in the town square. When Uncle Fred lifts a pumpkin as he says "Happy Halloween", the entire pile rolls on top of him, killing him. Everyone in town is at Uncle Fred's funeral and Danny is very sad. As a memento, he lets his grandfather's favorite car shoot down the track and rest with his coffin. However, because of Uncle Fred's love of Halloween, the magic in the cemetery allows him to return as a zombie. Unfortunately, that same magic awoke others from their slumber, including Curtis. The zombies begin capturing all the townsfolk and gathering them to the creepy old Victorian style house chanting the phrase "Statue." Meanwhile, Danny and his crush, Dayna Stenson (Brittany Byrnes) try to explain to James and Nurse Taylor the situation. Uncle Fred reveals his zombie self to his son and Nurse Taylor, both fainting in the process. Zombies break into the house and Uncle Fred explains that Curtis might be behind the zombies awakening and tells them to escape while he holds the other zombies off. Unfortunately, he, his son, and Nurse Taylor are all captured, one of the zombies stating that Uncle Fred was the main part of the plan. Dayna pleaded to stop and blames herself for trying to celebrate Halloween. Danny blames himself for being a coward and not standing up for himself. When everyone is gathered, Curtis reveals himself to the people. As he is about to reveal his statue, he is attacked and literally torn apart by Kankel.