Following Mr E. R. Udite's cryptic instructions, the vampire benders land in Basil's hotel where he greets them warmly. Apparently a mysterious millionaire phoned to make reservations for his grandchildren.
Unfortunately, Manuel trips, accidentally pulling Cleo's skirt off. Avatar quickly fashions a replacement from two towels and a bent paper clip. Basil politely ignores this, apart from a few Freudian slips, until Sybil drags him away.
The Major wanders past. Due to a humorous misunderstanding, Solo and the Major both think the other is offering to buy them drinks. They head into the hotel bar, where they spend the rest of the episode drinking rum.
Nerdly deciphers the remainder of ERU's message. Apparently some other transdimensional traveller left one of 10,001 pieces of the Crystal of Ultimate Power somewhere in the hotel. Even the smallest fragment can grant one's heart's desire.
Fluffykins swallows the crystal fragment and, for the first time, turns into a giant snake. This doesn't help. While Basil is busy throttling Manuel the vampire benders escape through the story gate.
Cut to a dark and sinister room, where a mysterious woman is reclining in a bath of blood, surrounded by many scantily dressed handmaids. She watches the last few minutes of the episode on a giant screen, then laughs, and laughs, and laughs. This was the first glimpse of the Dark Council and their Citadel Of Evil. Within a few episodes, these dark-side interludes became a regular feature.
Fan Speculation: It is widely rumoured that Fluffykins is not actually turning into a giant snake but into a small wyrm, i.e. a young dragon. This would explain the mysterious fires in certain later episodes, but when asked, the producers said only, "What interesting ideas you fans have. Can we take notes?"