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In this feature-length film combining footage from classic Warner Brothers cartoon shorts with newly animated bridging sequences, Daffy Duck, after having induced laughter in an ailing millionaire and forestalled the millionaire's death for a time (as chronicled in Daffy Dilly (1948), is the beneficiary for the deceased millionaire's assets. But the millionaire's will clearly stipulates that Daffy must use the money for the common good, by providing a service, and should Daffy think of pursuing selfish aims, the millionaire's ghost will "repossess" his millions by making them disappear from Earthly existence. Under the pretense of community service, Daffy opens an exorcism agency and employs Porky Pig, Sylvester Cat, and Bugs Bunny to track and eliminate ghosts, ghouls, and other monsters, while Daffy secretly schemes to use his learned "ghost-busting" talents to rid himself of the millionaire's nagging spirit.

Middleton prepares for its bicentennial, and Grey House is to be the party venue. Good witch Cassie is remodeling it as B&B. her first and only guest, Nick Chasen, claims to be a distant relative. He produces papers to prove he's the heir of the builder, colonial era captain Hamblin, while the Grey lady was his mistress and stole it. Police chief and lover Jake Russell goes all the way to motivate her to fight and disprove the claim before she's effectively disowned. Brandon is dared to pass a rascals-initiation by local brat Steve and Duke. George's gardening skills lead to romance.