As Billy, Mandy, and Irwin need to write a school report on tall tales, Grim tells outrageous tall tales about Pecos Billy (based on Pecos Bill), Paula Bunyan (based on Paul Bunyan), and John Henry. In Grim's stories, Pecos Billy (Billy) tames a twister using his personal laser-shooting cow-like spacecraft, saving an Arizona trailer park; Paula Bunyan (Mandy) uses her blue ox companion, Babe, to stomp over a villain, creating the Grand Canyon in the process; John Henry (Irwin) digs through a tunnel so fast that he breaks the laws of physics and bursts into the "eighth dimension". After Grim tells them the stories, Mandy informs Billy and Irwin that he is trying to get them F's.