In the Forman basement, Jackie comes in with the new Village People album and shows it to Fez, who likes it, but Hyde takes a look at it and says that "Disco Sucks"; Randy agrees, and adds that it's so bad that this group needs to wear disguises. Donna tells them about some people in Chicago who had a Disco Sucks bonfire and burned all their disco albums, and Hyde says that they should do that too. Jackie and Fez disagree, saying that disco is great; Jackie points out that they've had some of their best times together because of disco and reminds him of the time that they won the dance contest together. Fez says that he has to go; it's time for him to pick up chicks; he also suggests that he and Jackie boycott the bonfire, but Jackie tells him that they should go together and defend disco as a team; Fez leaves and Randy tells Jackie that her plan is a good one, and that she'll be able to spend time with Fez this way; Jackie hopes that Fez will see that they're perfect together.
[Scene change: Red walks across the screen, Kitty sits behind him and waves her arms to music.]
In the Forman kitchen, Kitty tells Red that she's invited the new neighbors over for coffee and cookies and she wants him to be nice to them. The doorbell rings; she tells him that she hasn't met the wife, only the husband, Josh, but he seems nice; he's a car salesman and has already offered her a deal on a car, just because he likes her.
In the Forman living room, Kitty answers the door; Josh is there, and she asks where his wife is? Jeff comes up and says, "You're looking at her!" Kitty is confused but invites them in; she comments that she only saw the movers bring in one bed... then understands the situation. Red comes in from the kitchen; he meets the two men and tells them that they're lucky to be living together with no wives or girlfriends.
[Scene change: Hyde peers up at the camera, Randy jumps in the air.]
At the bonfire, people are putting records into a pile for the fire; Donna asks Randy who the girl was that he'd been talking to; he tells her it was Lisa, his ex-girlfriend from a few years back when he was a camp councillor; Donna didn't know about either the girlfriend or the camp job. Hyde is selling beer from a keg to a Rocker Guy; he tells him that the beer is $1.00, but the cup is $3.00 and there's a $2.00 pouring fee, and if the guy doesn't like it, then he can just get his beer at the other place... but there is no other place. Jackie and Fez arrive with a police officer and tell him that Hyde is the one having the illegal bonfire; the officer is all for enforcing the law until Jackie comments that they shouldn't be burning disco albums, then the officer agrees that disco sucks and has a beer with Hyde, who calls it a disco miracle.
[Scene change: Donna's face in a close up shot, Randy falls behind her.]
At the bonfire, Randy and Donna are looking at the stars; a girl comes up (Linda) and recognizes Randy, then tells him that Missy is at the bonfire too, and goes off to get her. Donna asks who she was, and it turns out that both Linda and Missy were ex-girlfriends of Randy's, and they're also sisters. He tells her not to worry, as he didn't date them at the same time; there was a summer between them... their cousin, Summer. Donna comments that she's dating a man-slut; Randy tells her that she's probably dated a lot too, but she says no, she's only dated Eric. Over by the fire, Jackie tries to stop people from putting albums on the pile; Hyde comes over and tells her that he's been thinking of ways to get back at her for bringing the cops, and he's realized that she's only there because she wants to be with Fez, so he's found the skankiest girl there and given her free beer, then introduced her to Fez. He points Fez and the girl out to Jackie; they're kissing; Fez sees Jackie and introduces her to Kelly, saying that every time he says "Disco sucks" she sticks her tongue down his throat; he demonstrates. Jackie tries to tell Fez that all rocker chicks have STDs, but when Kelly says that she doesn't think she has anything, Fez decides that that's good enough for him.
[Scene change: Jackie and Donna do The Bump.]
In the Forman living room, Red, Kitty, Jeff and Josh are watching football on TV; Red comments on the Quarterback's stats and says that he's hot; Jeff agrees, then takes another cookie, which causes Josh to comment that he doesn't need any more to eat. The two of them start to argue, and Red comments that they don't need wives since they're already arguing like an old married couple. Kitty tells Red that she needs to talk to him in the kitchen, and Red reluctantly follows her.
In the Forman kitchen, Red wants to know what was so important that he has to miss the football game; from the living room, we hear Josh and Jeff shout "Touchdown!" Red opens the door and looks out into the living room, just in time to see Josh and Jeff giving each other high-fives, then kiss each other. He closes the kitchen door; he's in complete shock, and tells Kitty that he thinks their new neighbors are gay.
[Scene change: Red looms towards the camera.]
In the Forman kitchen, Kitty tells Red that he can't hide in there all night; he agrees and says he only has to stay in the kitchen until Josh and Jeff leave. He tells Kitty that he can't go back out to the living room, as he doesn't know what to say to them now; she points out that he had lots to talk about with them before he knew that they were gay. Bob comes in; Red tells him that the new neighbors are gay and Bob seems upset... because now they'll be all over him. He tells Red and Kitty that he doesn't know why, but men love him. Kitty tells Red that he has to go out to the living room, so he does...
In the Forman living room, Red runs through and shouts "good night!" as he heads up the stairs; Josh and Jeff watch him go, looking confused.
[Scene change: Fez dances towards the camera.]
At the bonfire, in the bushes, Fez and Kelly are in his car, making out; she has to get out of the car to go throw up again, and while she's gone, Fez turns on the radio and tunes to a station that's playing Y.M.C.A. by Village People. He imagines... the Village People are there by the car; they tell him that he came to the bonfire with Jackie and so he should leave with her too; Fez tells them that he just can't stop himself from getting girls and they must know what that's like... then agrees with them... Kelly comes back to the car and wants to continue making out as she's finished vomiting; Fez tells her that he can't as he has somewhere else to be and also, she has spaghetti on her mouth. At the fire pile, Donna tells Hyde that Randy's dated every girl there; Randy comes over with a girl, Sarah, and tells Donna that he's never dated her. Sarah confirms this but then tells Randy that he's cute and wants to go out with him; she tells him to call her. Hyde goes over to light the fire; Jackie tries to stop him and then Fez shows up. He tells Jackie that he should have been with her all evening and then tells the crowd that he has an announcement: he and Jackie are in love... with disco! As he's speaking, he swings his arm and knocks over the torch that was standing there; it falls onto the pile of records and the fire starts. The crowd cheers.
[Scene change: Jackie jumps in the air, Fez lounges behind her.]
At the bonfire, the Cop congratulates Hyde on a successful evening, but tells him that he has to write a ticket for disturbing the peace, and the ticket is for... he asks how much Hyde made, and when he finds out that it's $208, he tells Hyde that that's how much the ticket is for. Hyde hands over the cash, and as the officer turns to leave, he pulls the officer's badge out from behind him and asks if the officer wants to buy it... for $208. The officer gives Hyde back the money and takes his badge, then Hyde pulls out the cruiser's keys and offers to sell those to the officer as well. A little ways away, Jackie tells Donna that the whole evening was a nightmare, and that Fez only wants to be her friend; Donna points out that everyone could use more friends... except Randy, then goes off to chase another of Randy's ex-girlfriends.
[Scene change: Donna dances on the screen.]
In the Forman living room, the doorbell rings; it's Josh and Jeff, and they've brought over a cake. Red seems uncomfortable talking to them, but they tell him that he's been really welcoming to them, and they appreciate that; they give him the cake and when he asks what kind it is, they tell him, "Fruitcake!" Kitty laughs; Red suggests that they watch the football game. As they sit down, Red says that he's looking forward to seeing the Packers crush the Vikings; Josh comments that they like the Vikings. Red is upset about this news, and tells them to get out; they try to explain that they're both from Minnesota and they can't help it; they were born this way, but Red won't listen and makes them leave.
[End credits: On a stage, the Village People are holding auditions; Fez comes in wearing a chicken suit; they tell him that it's great and just what they've been looking for. They tell Leather Guy to get out, and start dancing to Y.M.C.A. with Fez.]