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He comes to the street looking for someone to play the lead role in his upcoming film, The Chicken King. Telly is most interested and spends the episode trying to perfect his chicken performance for Walt, who eventually gives the role to Elmo instead. Walt comforts Telly, assuring him there are other roles in the film for him.
Mr. Dizzy returns with a finished film not long after ("I'm quick and I'm cheap. Hollywood loves me.") and screens it for the monsters and Susan. He heads off to cast his next film, The Dog Prince, which the monsters also want in on.