This episode really knows how kids will act when there was a situation like this episode!
Basically Pete wanted Max and PJ to go watch a horror movie, and when they did, they were most expecting the "Mutilator" when there were signs of the mutilator (played by Pete). However, it all seemed realistic when Goofy's goofiness was thrown into the zany horrors to the kids. Of course, they must face their fears as well, and that is when the time comes for the courage to be necessary.
Being a spoof of scary shows it shines, even though it's called a "spoof" for being a parody, but at least it's based on real life rather than other TV shows.
When you watch it, watch out for the mistaken perceptions of the kids when they see the horrors coming to life!