We are introduced to most of the characters (Dirk, David, Jimmy, Mick, Keith, Joe, Jack) by Michael Caine, who is buying a birthday present for Mrs Huggett.

Michael has a script he's interested in (Bongo in the Congo), that he feels will be just right for Joe Pesci. However, after a less than enthusiastic response, he takes it to Al Pacino. Dean also makes his first appearance.

Mick annoys the residents by preaching in the streets. Len's first appearance comes in this episode. Dirk Bogarde tips the police off about Jimmy Hill's supposed drug hoard.

The continually pissed John Hurt arrives in Stella Street. Whilst Michael is out of town, Joe saves time and bother changing his house by pretending Michael's house is his own for his mother and stepfather's arrival. However, Michael's trip is cancelled and he returns early.

To celebrate the 33rd anniversary of Zulu, Michael has a fancy dress party at his house. Rows erupt over a game of Monopoly, Mick and Keith DJ at the party and inadvertantly cause Mrs Hugett to pass out. As the ambulance arrives, arguments rage over which poor sod should give her mouth-to-mouth.

The street rallys round to help whilst Mrs Hugett recuperates from a bout of alcoholic poisoning. However, Dirk is convinced Len the Gardener is trying to murder him.

As Dirk's paranoia grows over Len's attempts to kill him, he seeks solace in Jack's house, but finds it seriously lacking. Meanwhile, Jimmy finds himself in huge amounts of debt to Mick and keith as his drink problem grows.

Following Joe's breakdown at the close of the previous episode, he returns to Stella Street after having had a labotomy. He is a changed character much to the shock of the residents. As Christmas gets closer, residents leave for warmer climates. Mrs Hugett tries to con Jack out of money before he leaves - and succeeds.

Christmas is a depressing time for the more lonely members of Stella Street. Roger and David Bowie find company with each other whilst Jimmy finds himself spending quality time with the still passive Joe. As Mrs Hugett leaves for a holiday, John Hurt collapses in the street and inadvertantly causes Joe to revert to horrific form.