A child named Nicky Roth is chasing a ball down the street when he hears screams coming from his neighbor's house which belongs to Theodore Peterson.
Nicky goes to investigate and witnesses Mr. Peterson locking someone in his basement.
Nicky sneaks into the house, finds the key to the basement, and enters.
He finds that Mr. Peterson has converted his basement into a makeshift underground dungeon, but finds no sign of any prisoner.
Mr. Peterson then chases Nicky and locks him up in the dungeon, thus beginning Act 2.
He manages to escape his cell and reach the surface, only to find that Mr. Peterson has erected a massive fence around his property to prevent escape.
Nicky is forced to solve several puzzles to find a way to escape Mr. Peterson's property.
Once he crosses the fence, he flees back to his home, and Mr. Peterson does not give chase.