The entire population of Lemon Twist, Nevada, one man, has turned out to watch the racers cross the finish line. The Slag Brothers are in the lead, but Red Max tries to pass and his propeller hits one of their clubs, destroying both accelerators. Professor Pat Pending moves ahead. When Dick Dastardly pushes a boulder to block the road, the Professor deploys a giant spring, deflecting it back to Dastardly.
As the other racers snake along the Snake River, Rufus Ruffcut and Sawtooth cut to the front. They reach the ghost town of Spookane, where two bored ghosts reside. Dastardly and Muttley don bedsheets to frighten the others, but the ghosts take their sheets and scare them.
The Ant Hill Mob run out of gas but use paddle power until The Buzzwagon cuts through their paddles. The Creepy Coupe uses dragon jet power to burn up the road. The ghosts prepare to spook the next racers, but The Gruesome Twosome scare them instead.
Leaving Spookane, Penelope Pitstop takes the lead from Red Max, who is having trouble with The Crimson Haybaler. Dastardly erects a painted steel backdrop to try to stop the racers, but The Turbo Terrific drives right into the scene. The Convert-a-Car changes into a rocket car and crashes into The Bouldermobile. Penelope passes the Creepy Coupe near the finish line, but Dick Dastardly in third place extends the tip of his car to pass the line first. However, the judge considers this a cheat and he is disqualified.
- Penelope Pitstop (The Compact Pussycat)
- Gruesome Twosome (The Creepy Coupe)
- Rufus Ruffcut and Sawtooth (The Buzzwagon)
- Before the break, the Slag Brothers arrive in Spookane, and are scared by the ghosts. After the break, the Slag Brothers have yet to reach Spookane.