The buddies are playing prison-ball, with Kaeloo and Quack Quack in one team and Mr. Cat and Stumpy in the other. Kaeloo turns out to be really good at catching the ball, and Stumpy takes the term "prison" in "prison ball" too literally.
The grand prize for eating 712 yogurts is a pack of Mr. Coolskin cards that grant the user superpowers. Stumpy gets Quack Quack to eat the yogurt for him, and the buddies play with the cards.
The buddies find a parallel planet Smileyland on the other side of the galaxy, where Mr. Cat eats yogurt, Quack Quack torments him, and Stumpy is intelligent.
A strange object falls out of the sky. Kaeloo and Quack Quack want to keep it, but Mr. Cat and Stumpy try to get rid of it because they think it might be dangerous.