The Boogie Man (or Boogie for short, just like how Grim is the Grim Reaper) is losing his touch. He decides to pick on Grim, as he bullied Grim in high school. Boogie sends Billy to another dimension. Grim tries to get revenge on Boogie and maybe get Billy back. Grim beats Boogie at scaring a kid and Boogie has to disappear forever. Grim doesn't bother with getting Billy back.
Here Thar Be Dwarves
Billy goes on a picnic. Yogi Bear and Boo-Boo try to steal his picnic basket and he gets chased into a cave. Billy meets some dwarves, who are mad at the elves for cheating them out of the trillion-dollar cookie business and stuck them with mushrooms. Billy, disguised as an elf, invades the cookie factory and shuts down the anti-dwarf forcefield. A fight then ensues but Billy convinces them to get along. This is followed by Billy singing karaoke and a commercial for Mushookies.
Two hilarious episodes! Well, Bully Boogie wasn't all that funny but it was still a well-written episode. But the last line: "Hey, sluggy monster! You gots a BOOGIE in your nose! Ha-ha, Boogie! I said Boogie," is pure Billy-stupidness and that's what makes the show great.
Here Thar Be Dwarves is one of my favorite episodes ever (almost all of them were written and/or storyboarded by C.H. Greenblatt who also wrote some of my favorite SpongeBob episodes). Just so many moments worth mentioning.
1. Billy & Grim have a flashback to Billy being kidnapped by a sasquatch. Mandy enters, and they all have the same flashback. Gladys enters and there's the same flashback again. Harold enters and the flashback is instead to Harold putting on the sasquatch costume.
2. The whole Yogi Bear scene. Those bears look like they're on drugs... they even thought Billy was a girl. And when Billy ran away, Boo-Boo yelled, "Don't let him get away!"
3. The "ancient writing" is actually graffiti. Billy reads some aloud but is stopped after, "For a good time call..."
4. Billy walks into a flashback and causes an argument within the flashback.
5. The forcefield generator is just like in Star Wars.
6. When the battle breaks out, a drill sergeant says that it's gonna be too intense for the younger viewers. Instead they show footage of a koala. The battle's over... or is it? We briefly see the battle before going back to the koala. The sergeant once knew a guy who misread the signals...
7. Billy sings karaoke!