Confusion reigns on Earth as Queen Gertrude of Genovia sacks her cabinet, invites all the world's leaders to attend a conference at her palace and starts behaving very strangely. It soon emerges that Dr. Mu has shrunk himself down to the size of a single bacterium, transported himself into her body and is now controlling her! When Rufus decides to go after him, teaming up with a pair of royal brain cells, things don't go quite according to plan.

Dr. Mu has invented a highly dangerous robot/toaster and soon mass-produces a robot/toaster army with which to subjugate the Earth. Can Rufus and the cloned workforce of Dr. Mu's factory planet prevent the invasion? And will anyone spot the fatal flaw in Dr. Mu's scheme? And will Steve be able to get a word in edgeways?

Rufus is transported to the Dream Station, a giant space station in orbit above the Land of Nod, the place where all the dreams in the universe take place. Dr. Muhahaha has sabotaged the Dream Station and is gradually sending the Earth's population to sleep. To save the world from this waking nightmare, Rufus must travel to the Dream Station and find a way to wake the world.