Concerned by the power of the mysterious bag, Billy returns it to Alfonso, who has a new offer: swap his dog Fred in return for a Italian greyhound called Giulietta for the day. What's more, it seems that Giulietta is no ordinary greyhound; she can do tricks and soon Billy is showing her off at school. However, it also attracts the attentions of school bully Ginger Gahagan and risks discovery by headmaster Mr Hardwood, when a school assembly goes horribly wrong.