Survivors of a tragic shipping collision are rescued by a mysterious black ship which appears out of the fog. Little do they realise that the ship is actually a Nazi torture ship which has sailed the seas for years, luring unsuspecting sailors aboard and killing them off one by one.

Peanut butter is the secret ingredient for magic potions made by two friendly ghosts. Eleven-year-old Michael loses all of his hair when he gets a fright and uses the potion to get his hair back, but too much peanut butter causes things to get a bit hairy.