When secretive new neighbors move in next door, suburbanite Ray Peterson and his friends let their paranoia get the best of them as they start to suspect the newcomers of evildoings and commence an investigation. But it's hardly how Ray, who much prefers drinking beer, reading his newspaper and watching a ball game on the tube expected to spend his vacation.

Lazy preppie Palmer Woodrow hires street-smart Eddie Keaton to go to school for him while he lives it up in Europe. Eddie falls in love with preppie gal Tracey, upsetting Biff, the Hoover Academy bully. When his bookie from the old neighborhood, Dice, comes to collect on Eddie's gambling debts and Palmer returns early from Europe, the scheme slowly starts to unravel. Soon, Eddie can't even tell whose side he's really on.