Episode 1: The Treasure of Grundo
We find in this episode, the first of the series, Teddy Ruxpin and his best friend Grubby the Octopede in the land of Grundo. Grubby is complaining that "his feet are getting sore, he must have stepped on every rock between Rillonia and here." Teddy didn't tell him adventure would be this hard on his feet. When a flock of Fobs, comes to say hello, Grubby assumes they are dangerous creatures. Teddy on the other hand, says they don't look dangerous at all. The Fobs assure them they were the friendliest creatures in Grundo. The two treasure hunters decide to stop and rest in Bounder Pass. There, Grubby cooks some of his Roasted Root Stew. When he asks Teddy what he thinks of the stew, he calls them "interesting", so as not to hurt Grubby's fellings. Later, they are attacked by a pack of Bounders. They run through the Valley until they were saved by a man who identified himself as Newton Gimmick, an inventor who happened to live in the Valley which happened to be named Gimmick's Valley. He recognizes Teddy to be an Illiop, and Teddy tells Gimmick that Grubby was an Octopede. Teddy tells Gimmick that he and Grubby are here on a great adventure. Teddy spills the beans while L.B., one of the Bounders, is watching from the bushes. Gimmick invites the two to his house for lunch. Naturally, Grubby is more then happy to agree.
Meanwhile, up in a nearby tower, L.B. is getting a stick pulled out of his mouth by Jack W. Tweeg, otherwise known as just Tweeg, or in the Bounders' case, their boss. Tweeg complains that L.B. can't do anything right. All he asked them to do was drive Gimmick out of the Valley. L.B. says that if Tweeg is so much better, why can't he get rid of Gimmick? Tweeg puts the conversation aside and L.B. says that Gimmick has a couple of visitors. When Tweeg realizes one of them is an Illiop, he assumes that they're after his recipe for turning buttermilk into gold. Then he tells L.B. to listen in on the conversation they're having on Gimmick's front proch.
Teddy shows Gimmick the map and a strange medallion that was with it. Gimmick reads the words on the medallion: "Spirit, Treasure, Ledge". Tweeg decides to fire his cannon. When Teddy and Grubby get worried, Gimmick says that "Tweeg is without a doubt, the World's Worst Shot. If he's firing at us, this is probably the safest place in the Valley to be." The cannonball plops down about a yard from the porch. Then Gimmick takes them to his latest invention which he believes will be very useful in their quest.
Around the back of the house, is the Airship. Grubby says it looks kind of like a boat. Gimmick agrees that it did start out as a boat but he realized he wasn't very close to water. Then he explained that pumping hot air into a giant airbag strapped to the Ship, the hot air would act as a balloon and pull the Ship into the sky. The hot air was made by burning wood in a furnace which piped it's way into the airbag. The airbag was tied to the Ship.
Gimmick goes back into the house to get some supplies. Along the way, L.B. pretends to attack Gimmick and, mistaking the map for a stick, Gimmick shoves the Treasure Map into L.B.'s mouth. L.B. brings the map to Tweeg, who replaces it with a phony map. When Gimmick realizes that he forgot the Map, he goes back to the house to get it. L.B. leaves the phony map on the path and Gimmick, thinking it was the real map, picked it up and went back to the Airship.
When they finally get the Ship lifted off, they realize that they have no way to steer. They crash into the tree of Leota the Woodsprite. Because she had been flying all of her life, she gave them advice about steering the Airship. She said to use a propeller to steer the Airship, to shortten the straps of the airbag for more lift, and to add a new mast. When they offer her a share in the Treasure, she declines and they bid her farewell.
Meanwhile, Tweeg and L.B. merrily on there way to finding the Treasure. L.B. was hauling Tweeg in a wagon when a flock of Fobs come and L.B. runs for cover. When Tweeg asks why he ran away, L.B. says it was because "Fobs are so helpful and friendly and loyal, I hate that in an animal".
Then they reach a small crack in the earth. When Gimmick realizes it's Trembly Fault, he explains that they're headed in the opposite direction of the Treasure. Teddy realizes the map is a fake and Gimmick assumes Tweeg had something to do with it.
To make matters worse, they run out of fuel for the Ship and begin to crash.
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