This episode guide has been compiled from incomplete video material.
It's Slimey's first day at worm school and Gina and Oscar make sure he has everything he needs. This includes a large bag of dirt, which Slimey will need for naptime. Slimey takes the worm bus to school, but forgets to bring the dirt. Gina must bring it to him...just as Oscar planned.
Gina and Telly observe the worm school set up in the arbor. They note the similarities between it and regular school, though Telly wonders how they can raise their hands to answer questions. The worms raise their tails instead.
Oscar finds it hard to believe how fast Slimey is growing up and recalls when they first met....
SCENE 3 cont'd
In a flashback, Oscar hangs out in the park on a rainy day. He watches as some worms play in the mud, including a baby worm, who takes notice of Oscar. The worm (Slimey) makes his way to Oscar, crawls up on his shoulder and falls asleep. Ever since, he's lived with Oscar. The following season, this flashback would be used as a stand-alone insert, featuring new bookends by Oscar.
SCENE 3 cont'd
Back in the present, Oscar isn't sure if he feels happy or sad and Mr. Handford states he can feel both ways. Now, Oscar doesn't feel happy or sad - he's mad at Mr. Handford for bothering him!
Big Bird watches the worms play tag at recess, but notices a worm all alone. Slimey invites him to join and even invites Big Bird, who uses his finger to pretend he's a worm.
The worms learn the alphabet in class, when Snuffy's jumping disrupts the lesson. Big Bird suggests he pretend he's rollerskating instead, but since his imaginary skating skills aren't as good, he falls down.
Oscar, Gina and Mr. Handford meet up with Slimey and his new friends after school. Oscar is disgusted to learn they've learned to cooperate, but is pleased when they use the skill to form the word "NO" with their bodies.
Oscar announces the sponsors as Slimey and his friends form them.