The Warners' ongoing feud with a crazy neighbor, Walt, escalates after Walt demands Greg cut down a supposedly unsafe tree on his property. Greg solves the problem by calling a town inspector, but it indirectly results in a bigger problem when Jimmy lets the inspector know that he and Christine are living permanently in the Warners' guest house -- which is against the town's zoning regulation. The inspector tells Greg about a waiver that would allow Jimmy and Christine to continue living there, but everyone on the block would have to sign it... including Walt. As he wants Jimmy and Christine to move out, Greg doesn't even bother to tell them or Kim about it until after he experiences a guilt trip over the possibility of the Hughes living miles away in poverty. Jimmy drags a reluctant Greg into his scheme to get Walt to sign the waiver by befriending him, which is no mean feat due to Walt's eccentricity. But Walt isn't the owner of his house, and has to answer to a higher power who doesn't want to sign -- his mother. Meanwhile, Kim and Christine concoct their own scheme going door to door trying to coax the rest of the neighborhood into signing.